Taichung District Prosecutors Office indicted the founder of ACE Exchange on suspicion of fraud, with the virtual currency trading amount involved exceeding three billion New Taiwan Dollars.

The Taichung District Prosecutors' Office yesterday officially indicted ACE Exchange founder Pan Yizhang and six others for allegedly engaging in large-scale fraud using cryptocurrency, involving an amount exceeding NT$300 million. This case not only involves cryptocurrency trading but also money laundering and suspicions of organized crime, raising serious questions about regulations and security in the cryptocurrency market.

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Scam Operation: Abuse of Overseas Companies and Virtual Wallets

Pan Yizhang was accused of establishing overseas companies in the British Virgin Islands and setting up a virtual wallet system called "Alfred Wallet" to conduct complex financial fraud activities. Pan, through his subsidiary, Rich Digital Innovation Company, recruited people to invest in opaque cryptocurrency transactions. They specifically used the "A+CArd" stored value card and offline trading methods to collude with other fraud groups, deceiving investors into purchasing unredeemable virtual currencies.

Victims: Numerous Victims and Huge Losses

From June of last year to February of this year, the police conducted multiple searches and arrested 26 individuals involved in the case, including 6 individuals who were detained. There were a total of 162 victims in this case, with losses amounting to NT$340 million. Among them, an elderly couple was scammed of NT$150 million in just three months, highlighting the rampant nature of the fraud activities.

Further Tracking and Legal Action

In addition to Pan Yizhang, this case also involves multiple criminal suspects, including Lin Genghong, who claims to be the "God of the System." They deceived investors through various means to purchase worthless virtual currencies such as MOCT Magic Coin. Currently, the case is still under further investigation, and the Taichung District Prosecutor's Office has recommended the court to impose heavy sentences on the defendants and continue to investigate other individuals involved and their ill-gotten gains.

This case not only reveals the potential risks of cryptocurrency trading but also presents a serious challenge to Taiwan's financial regulatory authorities. Finding a balance between promoting technological innovation and protecting investor safety will be an important issue in future legislation and regulation.

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