Taiwanese authorities have formally charged 14 individuals in connection to what is being called the nation’s largest cryptocurrency money laundering operation, involving a staggering NT$2.3 billion, equivalent to approximately $75 million USD.
An investigation by the Shilin District Prosecutor’s Office, as reported by UDN, has concluded that a fraudulent scheme, disguised as legitimate cryptocurrency exchange franchises, defrauded over 1,500 individuals within a single year.
Shi Qiren, the primary suspect, is facing potential imprisonment of up to 25 years. He is accused of fraud, money laundering, and leading a criminal organization. Prosecutors have highlighted his lack of remorse following his arrest and emphasized the extensive damage inflicted on the victims.
Law enforcement seized a significant cache of assets, including 640,000 USDT tokens, Bitcoin, TRX, NT$60.49 million in cash, high-end vehicles, and other valuables, totaling over NT$100 million. They are also seeking the forfeiture of NT$1.275 billion linked to the criminal activity.
The illicit venture reportedly commenced in 2024, with Shi Qiren, alongside his wife, Ms. Lin, and a business director named Yang, establishing seemingly authentic cryptocurrency exchange businesses throughout Taiwan.
Their modus operandi involved establishing over 40 franchise locations operating under the names “CoinW” and “BiXiang Technology Co., Ltd.,” collecting franchise fees exceeding one million yuan from unsuspecting business partners.
The organization installed what they called “deposit machines” through cooperative security firms, presenting an image of professional infrastructure, while simultaneously gathering funds from victims without the necessary approvals from the Financial Supervisory Commission, or the mandated anti-money laundering registration.
The group’s activities lacked approval from Taiwan’s financial regulators and they failed to complete obligatory anti-money laundering registration. Despite this, they brazenly claimed to be “the only one authorized by the Financial Supervisory Commission in the country.”
This deliberately misleading claim of authorization proved remarkably successful, as numerous Taiwanese investors placed their trust in what they thought was a government-endorsed service provider operating within an industry known for its regulatory uncertainties.
Once the funds were obtained from victims, accomplices converted the cash into cryptocurrency. These cryptocurrencies were then transferred to international locations for purchasing USDT, creating complicated layers of transactions. Chief Prosecutor Luo Weiyuan described these transactions as intentional “breakpoints in the currency flow.”
The operation created an image of legitimacy while executing what prosecutors have termed ‘systematic fraud’. This fraud specifically targeted the growing population of Taiwanese residents interested in cryptocurrency.
Deception was rampant even within the criminal network, with prosecutors finding that Shi Qiren was defrauded of 3 million yuan by a man surnamed Gu, who pledged to facilitate the legitimization of the company’s anti-money laundering status.