Major Taiwanese Crypto Exchange Under Investigation For Alleged NT$1 Billion Fraud

ACE, one of Taiwan’s leading crypto exchanges, founded by David Pan and Lian Nan in 2018, is under investigation for a major fraud case exceeding NT$1 billion ($32M). 

Recent reports reveal that the exchange, known as “ACE Exchange,” allegedly engaged in fraudulent activities and was subjected to a thorough investigation by the New Taipei City Criminal Police Brigade. 

The investigation found that Lin Nan and Pan collaborated in deceiving over 100 investors through fake advertisements, resulting in substantial financial losses. The suspects used social media platforms, such as Instagram and Facebook, to promote shitcoins, allegedly taking advantage of information gaps and promising quick wealth.

Massive Raid On ACE Crypto Exchange

According to authorities, Lin Nan allegedly exploited the information gap to defraud investors by claiming that certain crypto assets listed on the ACE Exchange had realizable value, using the rise of Bitcoin (BTC) as an example. 

Through “misleading narratives,” victims were enticed to invest in virtual currencies referred to as “junk coins” and “air coins.” Ultimately, these investments turned out to be worthless, rendering them unable to be cashed out or circulated. 

According to local media reports, the fraudulent scheme involved a “well-organized” operation, with Pan providing a credible platform to list virtual currencies and enhance their credibility.

In response to the investigation, the police conducted raids at 15 locations in Taipei, New Taipei, and Taichung, including the ACE Exchange headquarters. Fourteen individuals, including Lin, Pan, and their employees, were apprehended during the raids. 

The police seized approximately NT$111.52 million ($3.5M) in cash from Lin’s residence and deducted crypto assets equivalent to NT$108 million ($3.47M) from the company’s stronghold. The illegal gains seized amounted to over NT$200 million (6.4M). 

Based on preliminary estimates, the fraud committed by Lin and Pan over three years may exceed $32 million.

Key Figures In ACE Exchange Fraud Case

According to the report, during police interrogations, both Lin and Pan remained “evasive and reluctant” to provide further information. 

Subsequently, all 14 individuals, including Lin and Pan, were transferred to the police on suspicion of fraud under the Criminal Code, the Money Laundering Prevention Act, and the Banking Act. The report notes that further legal actions will be pursued against them.

The investigation into ACE Exchange, Taiwan’s largest crypto exchange, has revealed a significant fraud case involving over NT$1 billion. 

The founders, Lin Nan, and Pan Nan, are accused of promoting worthless crypto assets and deceiving investors through false advertisements. As the investigation progresses, further details are expected to emerge, shedding more light on the extent of the fraud and its impact on the victims.

Featured image from Shutterstock, chart from TradingView.com