Taiwan‘s police investigation on the promotion of dubious digital currencies revealed that unsuspecting investors have already lost a staggering NT$1 billion (approximately 32.2 million USD). 14 people, including ACE founder David Pan, and co-conspirator Lin Nan, were apprehended following this inquiry.
They’ve been accused of conspiring to defraud over 100 investors over three years. This fraudulent scheme leveraged misleading advertising to convince potential investors to invest in these fake digital currencies.
Besides cash transactions, over NT$100 million in virtual currencies were converted into Taiwanese dollars. As a result, the beneficiaries earned illegal profits amounting to approximately NT$200 million.
Lin Nan targeted potential investors via social media platforms, particularly Instagram and Facebook. The posts suggested that investors would accumulate wealth fast through their fake cryptocurrency offers.
On the other hand, David Nan exploited ACE Exchange’s credibility to lend an air of legitimacy to their dubious operations. Authorities revealed that ACE Exchange manipulated information and likened these virtual currencies to Bitcoin’s success story.
Many victims didn’t do thorough due diligence hence, falling for the promised high rewards and the seemingly professional operation. Sadly, the reality sank in after the investigation and investors were left stuck with worthless and untradeable shit coins.
Police specifically raided 15 locations and arrested the two business partners (David and Lin), and their associates. Law enforcement suggests that the fraudulent scheme likely generated over NT$1 billion over the three years.
During interrogation, David and Lin remained reserved and tried to evade liability or any direct confession. However, all 14 suspects faced various charges under the Criminal Law, Money Laundering Prevention Act, and Banking Act.