Prosecutors in Taiwan are recommending a minimum 20-year prison sentence for the four main suspects in the fraud and money laundering case related to the cryptocurrency trading platform ACE Exchange.

According to a local news report , the Taipei District Prosecutors’ Office indicted 32 people on fraud and money laundering charges, including ACE Exchange founder David Pan, his business partner, Lin Keng-hong, and prominent attorney Wang Chen-huan, who served as chairman of the exchange.

The prosecutors now believe that over 1,200 individuals were deceived, resulting in an estimated total loss of 800 million New Taiwan dollars (US$24.56 million). This is an increase from the previous estimated loss of 340 million New Taiwan dollars ($10.6 million).

According to the report, the increased scale of the losses justifies the sentence recommendation. The prosecutors also recommended at least 12 years for Wang, considering his status as a director of a well-known law firm and his alleged vital role in assisting the scheme.

In January 2024, Taipei City police arrested Pan and 14 others linked to the case , conducting raids at various sites, including Ace’s headquarters. Investigations revealed Pan’s association with the fraudulent crypto wallet service known as “Alfred” or “Afu wallet,” along with a related crypto card.

According to the prosecutors, in 2019, the suspects promoted investments in NFTC tokens, bitnature coins, mochange — a token from ACE Exchange, and other tokens, using white papers and promotional materials to enhance their credibility.

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During their promotional efforts, Pan and Lin aimed to develop ACE Exchange into Asia’s most comprehensive blockchain ecosystem for crypto trading. However, many investors experienced a sharp decline in token value. They were unable to convert them back to New Taiwan dollars as guaranteed, prompting them to file complaints for a legal investigation.

A Taiwanese court reportedly ruled that the defendant’s property should be seized, with some confiscated assets amounting to at least 3.5 million New Taiwan dollars or $110,000.

In response to the indictment, Ace Exchange published a statement on April 8, reiterating that Pan and his fraudulent activity had nothing to do with the platform, as he reportedly ceased to be involved in day-to-day operations in 2022.

Ace Exchange is a lesser-known centralized crypto exchange based in Taiwan. According to data from CoinMarketCap, the platform was launched in late 2018 and trades around $14 million per day. According to data from Traders Union, Ace Exchange should be considered a “high-risk cryptocurrency exchange” with a trust score of 2.78 out of 10.

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