Taiwan’s ACE exchange under investigation after $32.2 million fraud discovered

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ACE, one of Taiwan’s largest exchanges, was investigated by the Taipei City Criminal Police Brigade for suspected fraud.this investigation The amount associated with the promotion of “Shit Coins” was found to exceed NT$1 billion (approximately US$32.2 million).

The investigation led to the arrest of 14 people, including Lin Nan and Pan Nan, who were accused of conspiring to defraud more than 100 investors over three years. The scheme revolved around false advertising to lure investors into investing in seemingly worthless cryptocurrencies. In addition to cash transactions, more than NT$100 million (US$3,224,246) in cryptocurrency was exchanged for NT$, with illegal profits totaling approximately NT$200 million (US$6,448,492).

Lin Nan used social media platforms such as Instagram and Facebook to spread false claims about quickly accumulating wealth by investing in cryptocurrencies. Pan Nan used the reputation of the ACE exchange to list these dubious cryptocurrencies, helping to increase investor confidence.

Police confiscated cash at ACE Exchange headquarters

The authorities emphasized that ACE Exchange took advantage of information gaps to commit fraud, claiming that cryptocurrencies were the latest technology, and then used the popularity of Bitcoin as an example to say that certain cryptocurrencies would be valuable and extremely valuable in the future. However, the reality is completely different when investors find themselves holding worthless or expired cryptocurrencies that cannot be converted into cash or circulated.

Police detained 14 people including Lin and Pan

Police conducted raids at 15 locations and eventually arrested Lin, Pan and their associates, and seized NT$111.52 million (US$3,595,679) in cash from their residences. In addition, the company also confiscated NT$108 million (US$3,482,186) in virtual currency from the company’s business premises, making illegal profits of more than NT$200 million (US$6,448,492). Law enforcement estimates that Lin and Pan may have orchestrated fraud worth more than NT$1 billion (US$32.2 million) over three years.

During the police interrogation, both Lin and Pan expressed not guilty. After investigation, 14 people including Lin and Pan all faced charges under the Criminal Law, the Prevention of Money Laundering Law and the Banking Law.

Details of the investigation paint a worrying picture of activity in Taiwan’s cryptocurrency industry, highlighting the need for stricter regulatory measures to protect investors from such fraud. As the proceedings proceed, the authorities aim to ensure that those affected by this serious fraud are held accountable and justice is served.