Taiwan Police Bust Crypto Exchange in $32.1M Fraud Scheme
Criminal authorities in Taiwan arrested 14 employees of the leading cryptocurrency exchange ACE and alleged masterminds Lin Nan and Pan Nan on fraud charges totaling over $32.1 million.
The company stands accused of using social media hype and misinformation to promote and list worthless “shitcoins” and extract funds from duped investors.
Key Details:
- ACE allegedly made false claims around speculative token listings to manufacture FOMO.
- Victims bought into inflated hype, unaware that coins were near-worthless assets.
- Police seized $3.4 million in cash and crypto allegedly tied to illegal profits.
- Total losses estimated at above $32 million from over 100 affected investors
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Police Allege ACE Cashed in on Crypto FOMO
According to the report by local media outlet Liberty Times Net, ACE utilized information gaps around cryptocurrency to promote sham offerings tied to fake claims of real-world value and teams.
Lin and Pan allegedly created FOMO around speculative assets that, in truth, had no viable path to cash flow or platform functionality. The police described the tokens as junk coins with no lasting price viability.
The accused gave a sense of legitimacy to pure guessing by listing and promoting coins that were not well-known and not easily traded. Authorities raided 15 locations around Taiwan belonging to ACE, Lin, and Pan, including the corporate stronghold.
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In addition to detaining 14 employees, they secured nearly $3.4 million in seized assets, both in fiat cash and crypto. However, they estimate total losses to be upwards of $32 million when factoring in over 100 known affected customers.
The incident highlights ongoing concerns related to thinly traded altcoins with uncertain utility. Information gaps in such cases create opportunities for unethical individuals to manipulate market trends, only to withdraw from positions when reality takes hold.
Police described the victim’s realization as coming only once the coins had already plummeted. The high volatility leaves pumps and dumps enormously lucrative prior to collapse.
