Founder of ACE Exchange Charged with $10.7 Million Fraud

Taiwanese prosecutors have charged David Pan, the founder of local cryptocurrency exchange ACE Exchange, and six accomplices with money laundering and fraud amounting to at least $10.7 million.

According to the authorities, the trading platform managed the Alfred Wallet app and A+Card through an offshore entity. Users deposited cryptocurrencies into accounts, which the exchange’s team allegedly appropriated and laundered, prosecutors claim.

At least 162 individuals fell victim, losing over 342 million Taiwanese dollars ($10.7 million).

ACE Exchange representatives denied all allegations of illegal activities. They stated that Pan is not an active employee of the company and that the mentioned services were created by him with an external group of developers.

“The trading and operational status of the exchange is completely normal. We guarantee the security of user assets. All cryptocurrency and fiat deposit and withdrawal services are operating smoothly,” ACE stated.

Founded in 2018, ACE Exchange is one of Taiwan’s largest cryptocurrency exchanges. Pan ceased involvement with the platform in 2022.

In January 2024, Taiwanese police arrested David Pan and 14 accomplices on suspicion of promoting worthless digital assets. The damage exceeded $32.3 million.