Investigation into ACE Fraud Case Continues: Leaders and Employees of Fraudulent Group Under Investigation

The Taipei District Prosecutors' Office conducted the fourth large-scale search operation related to the fraud case involving "ACE Elite Exchange," one of the top three domestic cryptocurrency exchanges. The fraud ring associated with ACE Elite Exchange's founder, Pan Yizhang, had its executives and operations further investigated.

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The Fourth Wave Search Operation

The Taipei District Prosecutors Office commanded the Taipei City Investigation Bureau and the New Taipei City Criminal Investigation Division to launch the fourth wave search operation yesterday. This operation targeted 20 locations and brought back 3 branch presidents and 17 salespersons of the fraud group for questioning. It was decided that one salesperson surnamed Liu would be released on bail of 300,000 NTD and restricted from leaving the country or going overseas; while the other 12 salespersons were released on bail of 100,000 NTD each, with similar travel restrictions. As for the 3 branch presidents, they are expected to be transferred to the Northern Prosecutors Office for further questioning today.

Results of Previous Three Investigations

In the previous three investigation waves, the Taipei District Prosecutors Office has already prosecuted 32 individuals, including lawyer Wang Chen-huan. During the ongoing investigation, it was found that there were still other individuals involved in the case, leading to the fourth wave search operation and the arrest of 20 individuals.

Fraud Methods and Victims

Pan Yi-chang, the founder of ACE Exchange, is suspected of collaborating with the mastermind of the fraud group, Lin Geng-hong, who goes by the alias "God of the System," and Lin Ruo-qiao of the "Qian Qiao Team," to conduct fraud and money laundering activities using virtual currencies such as Magic Coin, CSO Coin, FITC Coin, and NFTC Coin. According to investigations, this fraud case involves over 1,200 victims, with losses totaling nearly 800 million NTD.

Criminal Organizational Operation Mode

The prosecutors found that Lin Geng-hong and others formed a criminal organization specializing in the fraudulent sale of various virtual currencies and blockchain-related products, accumulating criminal proceeds of at least 2.2 billion NTD. Lin Geng-hong instructed subordinates to transfer 43 million NTD to Wang Chen-huan, with 26 million NTD used for capital increase in ACE Exchange and another 17 million NTD for investment in Bangkok Jianye Law Firm.