Thomas Daniels
Taiwanese prosecutors have indicted 14 individuals in connection with what is now the nation’s largest cryptocurrency money‑laundering case. The Shilin District Prosecutor’s Office alleges the suspects orchestrated a scheme that defrauded more than 1,500 victims of approximately $71.9 million in illicit funds, marking a national record for crypto‑related laundering.
The indictment levels charges including fraud, money laundering, and organized crime, and seeks the seizure of NT$1.275 billion (roughly $39.8 million) attributed to proceeds obtained via fraudulent schemes . In addition, prosecutors are pursuing confiscation of holdings in USDT (640,000 USDT), undisclosed amounts of Bitcoin (BTC) and Tron (TRX), as well as over $1.8 million in cash, two premium vehicles, and bank deposits amounting to $3.13 million .
The alleged money‑laundering operation involved collecting $71.9 million in cash from unsuspecting victims, converting these funds into foreign currencies, and then procuring USDT through Taiwan‑based exchange BiXiang Technology . Alongside the indictment, prosecutors released a flowchart detailing the laundering process.
The investigation, which began in April with the arrest of all 14 suspects—including the alleged ringleader Shi Qiren—revealed that he may face a 25‑year prison term, especially for refusing to admit guilt .
According to prosecutor allegations, since 2024, Shi, his wife, and an associate surnamed Yang operated 40 outlets under the banners of “CoinW” and “CoinThink Technology Co., Ltd.” They collected millions in franchise fees and installed cash‑accepting machines via an affiliate, posing as the only firms authorized by Taiwan’s Financial Supervisory Commission. In doing so, they defrauded 1,539 individuals of $71.9 million through predatory franchising and cash collection devices .
Curiously, the group also became a victim of fraud: another suspect, surnamed Gu, allegedly defrauded Shi of $93,000, promising Anti‑Money Laundering registration that never materialized .
This indictment arrives shortly after a crypto influencer received a one‑year prison sentence for laundering money and committing wire fraud via cryptojacking schemes. It follows further high‑profile cases, including a report that a Russian national laundered $530 million through U.S. financial institutions and crypto exchanges using USDT to support Russian clients linked to sanctioned banks .
