Taiwan busts $32.2 million Crypto scam involving major exchange ACE, founder arrested
Fraudulent cryptocurrencies MOCT, NFTC, and BNAT were used in the deception.
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Taiwan’s law enforcement has uncovered and dismantled the largest cryptocurrency fraud scheme in the island’s history. Authorities conducted raids across over 15 locations in multiple cities, seizing over NT$1 billion, or $32.2 million USD, of illegal profits.
ACE Exchange, one of the largest cryptocurrency exchanges in Taiwan, was found to be actively promoting counterfeit cryptocurrencies, using its reputable image as a means to attract investors. The exchange systematically misled investors through deceptive social media advertisements, enticing them to invest in worthless digital assets.
Investigations revealed that ACE Exchange had manipulated its status over several years to perpetrate this extensive fraud, illicitly profiting from its platform’s unsuspecting traders.
The perpetrators behind the scam are David Pan and Lin Nan, who used social media platforms such as Instagram and Facebook to promote fraudulent cryptocurrencies like MOCT (Magic Coupon Coin), NFTC, and BNAT. They deceived investors with false promises that these cryptocurrencies would soon be listed on renowned exchanges globally, leading to quick financial gains.
Pan and Nan legitimized the scam by supplying ACE Exchange with a list of these fake cryptocurrencies. The exchange, leveraging its credibility, knowingly promoted these fraudulent assets and used misleading social media ads to lure investors.
Authorities confiscated over NT$111.52 million in cash ($3.5 million) and over NT$100 million in cryptocurrency ($3.2 million), representing the illicit profits amassed over several years when they raided Lin’s homes and the ACE Exchange headquarters. The police estimate that the two might have defrauded over NT$1 billion, or $32.2 million USD, over three years.
Along with 12 other employees, David Pan and Lin Nan now face criminal charges for fraud, money laundering, and banking law violations.