Founder of Taiwan’s Ace Exchange Faces Charges in $10.6M Money Laundering and Fraud Case

Taiwanese prosecutors have initiated legal proceedings against David Pan, the founder of Ace Exchange, a local cryptocurrency trading platform.

Official statements from prosecutors confirm his indictment, along with six other suspects, on 8 April.

The charges against David include money laundering and fraud, leading to losses totalling 340 million NT$ ($10.6 million).

David and 14 others were previously apprehended by Taipei City police in January 2024, following raids on various locations, including Ace's headquarters.

Investigations revealed his association with the fraudulent cryptocurrency wallet service known as "Alfred" or "Afu wallet," along with a related crypto card scheme.

Prosecutors allege that the defendants deceived customers by promising high returns through offline over-the-counter exchanges and fake investment groups.

Victims who deposited funds were unable to withdraw them or found their accounts blocked.

A Taiwanese court has ordered the seizure of the defendant's assets, with confiscated properties valued at a minimum of 3.5 million NT$ ($110,000).

In response to the indictment, Ace Exchange issued a statement, emphasising that David's illicit activities were unrelated to the platform, as he reportedly ceased involvement in day-to-day operations in 2022.

The firm emphasised that:

"The wallet product was developed by a third-party team entrusted by the former director Pan and is not a product or service launched by Ace Exchange. Please rest assured that the trading and operating conditions of Ace Exchange are normal. We ensure the security of user assets, and deposit and withdrawal services for all cryptocurrencies and New Taiwan dollars operate smoothly."