Authorities in Taiwan are leveling accusations against executives of a cryptocurrency exchange and several others, alleging their involvement in a massive crypto scam worth millions of dollars.
According to a recent report by the Taipei Times, prosecutors have charged 32 individuals with fraud related to the ACE crypto exchange and have recommended a 20-year prison sentence for the four operators of the trading platform.
Among those arrested are David Pan and Lin Keng-hong, the founders of ACE, and Wang Chen-huan, the chairman of the company. The Taiwanese government claims that the scheme defrauded approximately 1,200 people out of $24.56 million.
Prosecutors allege that the suspects began persuading others to purchase virtual currencies, including ACE’s native asset, starting in 2019. Pan and Lin assured investors that their goal was to transform ACE into Taiwan’s leading crypto trading platform. However, the value of the native asset plummeted, leaving investors unable to convert it back into Taiwanese dollars.
Prosecutors further claim that the suspects manipulated the asset prices on the platform to attract more investors. Wang is accused of receiving $5.5 million and reinvesting about half of that amount into ACE, thereby artificially boosting the asset prices and deceiving traders.
According to the report, prosecutors are seeking a 20-year sentence for Pan and Lin, and a 12-year sentence for Wang.
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