Authorities in Taiwan are reportedly accusing crypto exchange executives and dozens of others of running millions of dollars worth of crypto scams.
According to a new report from the Taipei Times, prosecutors charge 32 people with fraud allegedly linked to the ACE crypto exchange, recommending prison sentences of 20 years for the trading platform’s four operators.
Those arrested include David Pan and Lin Keng-hong, the founders of the crypto exchange platform ACE, and Wang Chen-huan, the company’s chairman. The Taiwanese government says the scheme defrauded about 1,200 of the $24.56 million.
Prosecutors say that starting in 2019, the suspects began encouraging others to buy virtual currencies, including the ACE exchange’s own assets.
Although Pan and Lin told investors that the plan was to make ACE the leading crypto trading platform in Taiwan, the value of its original assets plummeted and investors were subsequently unable to convert the digital assets into Taiwan dollars, the report said.
However, prosecutors say the suspects manipulated the price of assets on the platform to attract more investors.
Wang is accused of receiving $5.5 million and reinjecting about half of it into ACE as a means to boost asset prices, misleading traders.
According to the report, prosecutors recommend 20 years for Pan and Lin and 12 years for Wang.
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