The Allegations
Taiwanese authorities have charged 32 individuals, including crypto exchange executives, with fraud related to the ACE crypto exchange. Prosecutors are seeking 20-year sentences for the four operators of the platform.
The accused include David Pan and Lin Keng-hong, founders of ACE, and Wang Chen-huan, the firm’s chairman. They are alleged to have defrauded approximately 1,200 people out of $24.56 million.
The Scheme
Prosecutors allege that the suspects encouraged investors to purchase virtual currencies, including the native asset of the ACE exchange, starting in 2019. However, the value of the asset plummeted, leaving investors unable to convert it back into Taiwanese dollars.
Investigators believe the suspects manipulated asset prices on the platform to attract more investors. Wang is accused of receiving $5.5 million and reinvesting half of it into ACE to boost asset prices.
The Recommended Sentences
Prosecutors are recommending 20-year sentences for Pan and Lin, and 12 years for Wang. The investigation is ongoing, and further charges may be filed.
