Taiwan prosecutors seek detention of ACE Exchange head in widening fraud probe

Taiwanese prosecutors today requested a Taipei court to detain Chenhuan Wang, president of ACE Exchange, on suspicion of money laundering and fraud after David Pan, the company’s founder, was detained earlier this month for allegedly orchestrating fraud.

The Taipei District Prosecutors Office told The Block that Wang, who’s also the partner in charge of law firm Chien Yeh law offices, was summoned by prosecutors alongside four other suspects on Tuesday after the police raided multiple locations across Northern Taiwan. 

Following the interrogation, the prosecutors filed a request with the court for the detention and restriction of visitation rights for Wang and the four other suspects, according to the prosecutor's office.

Earlier this month, Pan and a co-conspirator surnamed Lin were accused of collaborating for three years, using false advertisements on social media to lure investors into putting money into worthless cryptocurrencies, including MOCT. The prosecutors said today that Wang was allegedly involved in the case, and a court is set to decide on his detention later today.

When the news of Pan’s arrest emerged earlier this month, ACE clarified in a statement that Pan stopped participating in daily operations in 2022, and Wang took on the role of president in September 2023. Wang said at the time that he had made efforts to delist controversial coins after he joined the exchange, and a spokesperson of ACE previously told The Block that the company was assisting the investigation as a witness.

ACE said today in a statement that the trading and operational conditions of the company remain normal. "We assure the security of user assets, and all services for deposit and withdrawal of cryptocurrencies and New Taiwan Dollar are functioning smoothly," the company added.

Established in 2018, ACE is one of the largest crypto exchanges in Taiwan, alongside BitoGroup and MaiCoin. ACE said its management team adheres to the rules of law and “will not tolerate any misconduct by anyone.”

ACE did not immediately respond to The Block’s request for further comment.

Chien Yeh Law Offices, where Wang serves as the partner in charge and head of the office, said today that the ACE case was Wang’s “personal investment affair” and another lawyer is taking over Wang’s role as head of the office.