The recent developments in the ongoing investigation of ACE exchange have shed light on a complex web of alleged fraud and money laundering. The Taipei District Prosecutors’ Office indicted 32 individuals, including ACE founder David Pan, his business partner Lin Keng-hong, and attorney Wang Chen-huan, who was the chairman of the exchange.

The investigation revealed a scheme where the accused advised investors to purchase several tokens, including NFTC tokens, BitNature (BNAT), and ACE’s MoChange (MOCT), with promises to make ACE exchange “Asia’s most complete blockchain ecosystem for cryptocurrency trading.” Subsequent manipulation of the tokens’ prices on the exchange led to significant losses for over 1,200 defrauded investors, with an estimated loss of NT$800 million.

The scheme allegedly obtained over NT$2.2 billion through the sale of tokens and other blockchain products, and the accused went to great lengths to hide the funds, even purchasing real estate. Prosecutors have recommended over 20 years in prison for the primary suspects, reflecting the magnitude of the losses incurred by the victims.

This indictment follows earlier charges of money laundering and fraud brought against David Pan and six other individuals. The “well-organized scheme” purportedly involved using the “Alfredo Wallet App,” created by ACE’s investee company, to engage in “offline and over-the-counter transactions of virtual currencies,” resulting in a loss of NT$340 million for over 162 victims.

ACE has sought to assure its users that the indicted individuals no longer have any involvement with the exchange, emphasizing that operating conditions have remained normal and that they have been collaborating with authorities.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The NFT and cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.