Case Details: Former ACE Head and Partner Arrested, Over NT$200 Million Seized
According to the Liberty Times, the former head of Taiwan's well-known crypto trading platform ACE (ACE Fa Bi Jia Mi Huo Bi Jiao Yi Suo), surnamed Pan, and his business partner Lin, were transferred to prosecutors on suspicion of criminal fraud, money laundering, and violations of the Banking Act. A total of 14 individuals, including Pan and Lin, were apprehended. During a raid on the evening of January 4, police seized over NT$100 million in cash from Lin's residence (exactly NT$111.52 million) and crypto assets valued at approximately NT$108 million from ACE's premises, bringing total illicit proceeds to over NT$200 million. Police estimate that the duo's fraud scheme over three years may have exceeded NT$1 billion.
Investigators revealed that Lin used social media platforms such as Instagram, Facebook, and X to post investment ads, enticing victims to invest in tokens including MOCT (Mo Quan Bi), NFTC, and BNAT. They claimed these tokens would be listed on major domestic and international exchanges, promising quick wealth. Pan allegedly provided ACE Exchange as the listing platform for these scam tokens, leveraging ACE's reputation in Taiwan to lend credibility. In reality, victims purchased worthless tokens (so-called 'trash coins' or 'air coins'), whose prices collapsed or became illiquid by the time investors realized the fraud.
ACE Exchange Response: Cooperating as Witness, Operations Unaffected
On the evening of January 4, ACE Exchange issued a statement explaining that the case involves alleged illegal activities by a coin issuer from 2019, and that ACE is cooperating as a witness. The exchange denied media reports that its employees were involved, and has requested corrections from the media. ACE emphasized that its president, Wang Chen-huan, who took office in September 2023, has been dedicated to compliance and legality. The exchange stated it will fully cooperate with investigations and has delisted the disputed tokens. 'The controversy and violations of specific project parties do not impact ACE's operations. We will operate more cautiously, strive to remain one of Taiwan's top three exchanges, and look forward to welcoming the bull market together with our users,' the statement read.
Regulatory Developments: FSC Fines Hong Han Creative NT$500,000 Same Day
Early 2024 saw two crypto-related incidents in Taiwan. Besides the ACE case, on January 3, Taiwan's Investigation Bureau discovered that Hong Han Creative Co., Ltd. was engaged in virtual currency business without completing anti-money laundering (AML) compliance declarations. The bureau referred the case to the Financial Supervisory Commission (FSC), which investigated and fined the company NT$500,000 on January 3, ordering it to fulfill AML declaration requirements or face continued penalties. The FSC noted that it had previously sent a letter on October 11, 2023, requiring Hong Han to submit its declaration by November 10, 2023, but the company failed to do so. The fine underscores Taiwan's tightening regulatory oversight of crypto businesses, warning exchanges and related firms to prioritize compliance.