Taiwan Indicts 14 in $72 Million Cryptocurrency Laundering Scheme

Taiwanese prosecutors have indicted 14 individuals in a cryptocurrency laundering case involving over 1,500 victims and illicit funds exceeding $70 million. The group, led by Shi Qiren, allegedly operated under the names CoinW and CoinThink Technology Co., collecting millions in franchise fees and depositing cash into foreign currency to launder the funds overseas. Authorities have requested confiscation of $39.8 million and seizure of additional assets, and prosecutors may impose a 25-year sentence on the alleged ringleader.

Taiwanese prosecutors have indicted 14 individuals in what is being described as the country’s largest cryptocurrency money laundering case, involving over 1,500 victims and illicit funds exceeding $70 million. The group, led by Shi Qiren, allegedly operated under the names CoinW and CoinThink Technology Co., collecting millions in franchise fees and depositing cash into foreign currency to launder the funds overseas.

The Shilin District Prosecutor’s Office indicted the 14 individuals on charges including fraud, money laundering, and organized crime. Prosecutors have requested the confiscation of NT$1.275 billion (approximately $39.8 million), seized cash, cars, bank deposits, and tagged USDT, BTC, and TRX holdings. The group is accused of converting over $71.9 million in victim funds into cryptocurrency and foreign currency via a non-licensed exchange.

The scheme involved opening 40 stores across Taiwan under the brands “CoinW” and “CoinThink Technology Co., Ltd.” from 2024, collecting franchise fees, and using deposit machines to collect cash from victims. Authorities allege that the group posed as the only firm authorized by Taiwan’s Financial Supervisory Commission, defrauding 1,539 people out of $71.9 million through franchise fees and cash collection machines.

CoinW has denied any ties to the money laundering case, stating that “the company’s management has never been involved in any illegal money laundering or fraudulent activities.” The platform has committed to disposing of any accounts or transactions involved in fraud or money laundering in accordance with the law.

The indictment came days after a crypto influencer was sentenced to a year in prison for money laundering and wire fraud charges after he defrauded two major cloud computing providers in a large-scale cryptojacking operation. This case highlights the growing trend of cryptocurrency-related crimes and the need for robust regulatory frameworks to combat these issues.

References:
[1] https://www.tradingview.com/news/cointelegraph:735fed682094b:0-taiwan-charges-suspects-in-record-72m-crypto-laundering-scheme/
[2] https://en.coinotag.com/taiwan-prosecutors-indict-14-in-alleged-72m-crypto-laundering-case-involving-usdt/