- The founder of Ace Exchange David Pan has been arrested on fraud charges
- Taiwanese authorities estimate that the founder and others pocketed over $6 million through dubious avenues
- The exchange said that the fraud charges involve only one trading pair that’s already marked for delisting
The founder of Taiwanese crypto exchange Ace Exchange David Pan has reportedly been arrested with 14 others in connection to a crypto-related fraud. According to local media outlet Liberty Times, Pan and his group were nabbed after law enforcement personnel raided the exchange and multiple other locations. The police alleged that Pan and his team made illegal gains after misleading investors in new crypto projects and making over $6 million, leaving the question of whether the exchange knew about the ongoing scheme.
Investors Promised High Returns
According to Liberty Times, Pan and the others used various means such as social media to promote and lure investors into crypto projects with little value. The team allegedly promised investors high returns once these projects’ tokens were listed on major exchanges like Ace, a line that’s common with investment scams.
The exchange’s president Wang Chenhuan disclosed that Ace is ready to work with the police and refuted claims that the exchange was involved with the alleged crimes, saying the platform is being treated “as a witness” by investigators.
The Ace president clarified that the investigations revolve around “some currencies listed in 2019 [and which] were involved in illegal activities.” In an announcement, the president said that the issue doesn’t affect the exchange’s operations.
Monitoring Transactions for Red Flags
He added that the platform will continue closely monitoring “market transaction status of all listed cryptocurrencies” for any red flags. The country’s police have gained access to around half of the ill-gotten funds.
Pan’s arrest comes barely a week after Renrenbit founder Zhao Dong was handed a seven-year prison time in China for operating an unauthorized crypto platform.
With the Taiwanese police seemingly having concrete evidence of the crypto-linked fraud, it’s likely Pan will be arraigned in court.
