Taiwan Authorities Uncover $32.2 Million Cryptocurrency Scam Involving Prominent Exchange ACE; Founder Apprehended
In a significant crackdown on cryptocurrency fraud, Taiwanese law enforcement agencies have dismantled the largest cryptocurrency scam in the country’s history, involving the major exchange ACE and its founder, David Pan. The fraudulent scheme, which involved counterfeit cryptocurrencies, resulted in the seizure of over NT$1 billion, or $32.2 million USD, of illegal profits.
ACE Exchange, one of Taiwan’s largest cryptocurrency exchanges, was found to be actively promoting counterfeit cryptocurrencies, using its reputable image to attract investors. The exchange systematically misled investors through deceptive social media advertisements, enticing them to invest in worthless digital assets.
The perpetrators behind the scam were David Pan and Lin Nan, who used social media platforms such as Instagram and Facebook to promote fraudulent cryptocurrencies like MOCT (Magic Coupon Coin), NFTC, and BNAT. They deceived investors with false promises that these cryptocurrencies would soon be listed on renowned exchanges globally, leading to quick financial gains[.
Authorities conducted raids across over 15 locations in multiple cities, including the ACE Exchange headquarters and Lin’s homes. They confiscated over NT$111.52 million in cash ($3.5 million) and over NT$100 million in cryptocurrency ($3.2 million), representing the illicit profits amassed over several years.
Along with David Pan, 14 other individuals were arrested, including employees of ACE Exchange. The police estimate that the two might have defrauded over NT$1 billion, or $32.2 million USD, over three years.
In response to the allegations, ACE Exchange announced plans to delist the MOCT-TWD trading pair on January 8. The spokesperson noted that many token holders had previously redeemed their tokens for various coupons.
The incident has highlighted the risks associated with thinly traded altcoins and the potential for manipulation and fraud within the cryptocurrency market. It serves as a cautionary tale for investors to conduct thorough due diligence before investing in digital assets. The case also underscores the need for increased vigilance and regulation to protect investors and maintain the integrity of the cryptocurrency industry. All of this happened just a few days after Singapore’s leader alerted us of deepfake crypto scams.
The Taiwanese authorities’ actions against ACE Exchange and its founder are part of a broader effort to crack down on fraudulent activities in the cryptocurrency space, as seen in other cases of crypto-related fraud and money laundering within the region. The outcome of this investigation may influence future regulatory frameworks and investor confidence in the cryptocurrency market in Taiwan and beyond.
Angel Marinov is the Managing Editor at Coinlabz. With extensive knowledge of crypto payments and blockchain use cases, Angel is a trusted source of accurate and timely information
