David Pan, the founder of Ace Exchange, was reportedly detained by Taiwanese authorities for allegedly utilizing cryptocurrency to perpetrate fraud.

The Taipei City police detained Pan and 14 other people on January 4th, according to an article published in the Liberty Times. The raids took place at many sites, including Ace's headquarters. According to reports, the authorities claimed those arrested made over 200 million Taiwanese dollars (6.4 million United States dollars) through fraudulent cryptocurrency promises made to investors.

According to the article, Pan and a co-conspirator, Lin are suspected of working together for three years to entice investors into investing in worthless cryptocurrencies, such as $MOCT, by posting misleading advertisements on social media.

Ace asserted that any suspected criminal activity was on the "token project side" and had no bearing on the exchange's operations in a statement posted on X (previously Twitter) yesterday. The exchange would "fully cooperate" with any inquiry, according to Ace President, Wang Chenhuan, and plans to delist the MOCT/TWD trading pair on January 8. $MOCT (listed on ACE in 2019) is one of the tokens under investigation in the alleged scam. Holders have been long asked to redeem their $MOCT tokens for coupons for meal or hotel accommodations.

According to a statement issued in the early hours of today, some cryptocurrencies listed in 2019 were involved in illegal activities. In essence, ACE is providing witness cooperation to the ongoing investigation. The statement also mentioned that the rumors about Ace’s employees being involved in the case were untrue as the arrested suspects have been reported to be non-employees.

“

Dear Users,

In response to today's media reports regarding ACE Exchange, the issue stems from individual token listings in 2019 that were involved in illegal activities. All ACE Exchange employees have cooperated fully with the investigation by law enforcement as witnesses. Some media reports inaccurately stated that our employees were implicated in the case, which is not true. We have sent letters to the media for corrections.

In September 2023, the new president of ACE Exchange, Wang Chen-Huan, who is also the director of ChienYeh Law Firm, took office. His primary focus has been on legality and compliance, as well as protecting user assets and adhering to the relevant laws and regulations of our country. The ownership of the company was transferred on December 14, 2023, to Wang Chen-Huan, who now holds 100% of the shares. This change is currently being registered with the competent authority. Mr. Pan Yi-Zhang and Ms. Lin Wan-Yu are no longer members of the ACE Exchange management team, and we hereby clarify this.

ACE Exchange continues to commit to legal and regulatory compliance for the exchange. In cases of suspected criminal activity, we will cooperate fully with law enforcement and, as required, delist the disputed currencies. We also hope for fair and strict penalties for illegal actions.

ACE Exchange is not affected by specific currency disputes or violations. Trading and operations are completely normal, ensuring the safety of user assets. Whether it’s depositing or withdrawing cryptocurrencies or New Taiwan dollars, all transactions can be processed normally. Should you have any questions or needs, please feel free to contact our official email and community channels. ACE Exchange is dedicated to serving you.

Sincerely,

ACE Team

“

The Taiwanese police retrieved about $3.5 million in cryptocurrency out of the seized funds; $3.6 million in cash from Lin’s residence in Taiwan. Pan and the other people are being detained on suspicion of fraud after it was stated that they refused to comply.

Ace is a known cryptocurrency trading platform in Taiwan. The company was established in 2018 and is a part of trade groups despite the nation's shifting regulatory landscape.

Do you think the exchange will gain the trust of its users again?