In recent news, the founders of ACE, one of Taiwan’s largest cryptocurrency exchanges, have been arrested for defrauding over 100 investors of more than 1 billion yuan. David Pan and Lin Nan, along with their teams, allegedly used social media platforms, including Instagram and Facebook, to deploy deceptive advertising over the past three years.
Lin Nan enticed potential investors through social media, promising quick profits by listing cryptocurrencies on known exchanges, while Pan Nan boosted ACE’s credibility, suggesting the listed digital currencies were trustworthy.
The fraudsters targeted investors’ vulnerabilities, convincing them that the listed cryptocurrencies could soar like Bitcoin and had a promising future, exploiting information gaps to their advantage.
However, investors were left with rapidly devaluing or worthless “insignificant cryptocurrencies.” Following the scam’s exposure, New Taipei City Criminal Police swiftly conducted raids across Taipei, New Taipei, and Taichung, arresting Lin, Pan, and 14 employees at 15 locations, including ACE’s headquarters.
The crackdown led to the seizure of 111.52 million yuan in cash from Lin’s home and cryptocurrencies equivalent to 108 million Taiwanese dollars from the company’s headquarters, totaling over 200 million Taiwanese dollars in illegal gains, approximately $6.431 million USD.