ACE exchange distances itself after founder’s fraud indictment

ACE Exchange founder David Pan, together with 6 other defendants, are taken into custody by Taiwanese authorities on charges of fraudulent behavior and using illegitimate money to fund their secret projects. The process by which the defrauders were said to have removed almost $10.7 million from unsuspecting buyers. Suspects announced their version on Monday, which stated that they reached out to investors through an offshore provider who, at the terminal, deposited stablecoins in the services, which are called”Alfred Wallet,” which resulted in unauthorized cash transfers.

An ambiguity emerged when a cash withdrawal request was made from a digital wallet, apparently the act by the perpetrators. Prosecutors stated that over 132 people filed fake complaints with the bank claiming over NTUSD 342 million ($10.7 million). It adds another important piece to the puzzle of cryptocurrency in Taiwan and some highlight the necessity of regulators to explore their application.

Response from ACE exchange

After its founder was indicted, ACE Exchange released a statement distancing the organization from the associated wallet service. The exchange disclosed that David Pan quit full-time work with ACE in 2022 and stated that Pan and an outside staff member independently developed the Alfred Wallet system. ACE Exchange assured owners the platform was working normally and their assets were secure, stating many services for depositing and withdrawing cryptocurrencies along with New Taiwan dollars were working normally.

This response will alleviate worries among its user base and regain trust in its services amid legal changes. ACE Exchange (2018) is among Taiwan’s premier cryptocurrency exchanges, which seeks to help maintain the condition by applying ethical and legal methods.

Additional legal challenges for pan

In addition, David Pan will encounter another legal dispute that is not related to the fake wallet service scam. He was detained in January in an unrelated case of cryptocurrency fraud. In this 3-year case, Pan and an associate whose last name was Lin fabricated false advertisements on social media for crypto investments in certain virtual currencies.

A few days ago, ACE Exchange announced Pan’s January arrest and suggested that his daily business operations would be ended in 2022. The exchange is going to tolerate any misbehavior, and the directive states that the company has legitimate compliance and sets a good example. While these legal actions happen, the community of observers and regulators continue to monitor how investors are viewing Taiwan’s crypto industry.

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