Taiwanese prosecutors have asked a Taipei court to hold Chenhuan Wang, the president of ACE Exchange, on suspicion of money laundering and fraud.
This comes after David Pan, the founder of the company, was arrested earlier this month on charges of allegedly manipulating fraud.
Wang is the partner in charge of the legal firm, Chien Yeh Law Offices. The Taipei District Prosecutors Office ordered Wang and four other suspects to be called in on Tuesday while police raided several locations in northern Taiwan.
According to the prosecutor’s office, after the interrogation, the prosecutors requested in court that Wang and the other four suspects be placed under house arrest and have their visitation rights restricted.
Earlier this month, it was alleged that Pan and a co-conspirator surnamed Lin worked together for three years to deceive investors into investing in worthless cryptocurrencies, such as MOCT, through fraudulent social media ads.
Wang was allegedly involved in the case, according to the prosecutors, and a court will decide whether to detain him later today.
After Pan’s arrest became public earlier this month, the ACE issued a statement clarifying that Pan had ceased to be involved in day-to-day operations in 2022 and Wang had assumed the role of president. Back then, Wang asserted that he had worked to remove controversial coins from the list ever since he joined the exchange.
In today’s statement, ACE said that the company’s trading and operational circumstances are unchanged. It also read, “We assure the security of user assets, and all services for deposit and withdrawal of cryptocurrencies and New Taiwan Dollar are functioning smoothly.”
The ACE case was Wang’s “personal investment affair,” according to Chien Yeh Law Offices. Wang will no longer be serving in this capacity; a new attorney will assume Wang’s position as head of the office.
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