Taiwan Prosecutors Charge 14 in $75M Crypto Laundering Case Involving CoinW

The Shilin District Prosecutor’s Office in China Taiwan has concluded its investigation into what is being labeled the region’s largest cryptocurrency money laundering case. Fourteen individuals, including business leaders connected to CoinW and BitShine Technology franchise outlets, were formally charged. The alleged scheme, involving unlicensed virtual asset operations, is reported to have laundered approximately NT$2.3 billion (around $75 million) through fraudulent franchise operations and digital platforms [2]. Prosecutors have requested the seizure of NT$1.275 billion in assets, including Bitcoin holdings and luxury goods such as high-end vehicles [1]. On-chain asset freezes are currently in place as the investigation moves forward.

The prosecution alleges that the suspects operated a network of 40 fake franchises and defrauded at least 1,539 victims through deceptive investment schemes [2]. These operations leveraged both traditional and digital financial instruments to obscure the trail of illicit funds, with CoinW reportedly serving as a key platform for converting and moving stolen assets [1]. The complexity and scale of the scheme highlight the growing risk of cryptocurrency being exploited by criminal networks for large-scale financial fraud.

The case has drawn attention to the regulatory challenges faced by authorities in overseeing the fast-moving digital asset market. In response, Taiwan regulators have announced plans to tighten anti-money laundering (AML) measures and enhance compliance requirements for cryptocurrency exchanges. The Financial Supervisory Commission has reported liquidity impacts from the case and is accelerating updates to regulatory frameworks to protect retail investors and curtail illicit flows [1]. The Shilin District Prosecutor’s Office has also indicated ongoing coordination with law enforcement to ensure continued asset freezes and enforcement actions.

This development aligns with a broader global trend of increased regulatory scrutiny of crypto platforms. In a related move, Australia’s AUSTRAC has mandated a mandatory audit for Binance Australia due to “serious concerns” about its AML and counter-terrorism financing controls [4]. Such actions reflect a growing international consensus on the need for stronger enforcement against crypto-related financial crimes. As regulators in China Taiwan and beyond continue to refine oversight, the case underscores the urgent demand for adaptive regulatory frameworks that can respond to the evolving landscape of digital finance without stifling legitimate innovation [3].

The legal proceedings against the 14 defendants are expected to shed further light on the operational mechanics of the alleged scheme. The outcome will likely influence future enforcement strategies and compliance expectations for cryptocurrency service providers. For now, the case serves as a clear signal that authorities in China Taiwan are prepared to take decisive action against those who exploit digital assets for illicit gain. The focus on AML compliance and enhanced oversight is expected to continue shaping the regulatory environment for the crypto market in the coming months.

Sources:

[1] Coin Gabbar. Taiwan Busts $75M Money Laundering Linked To CoinW ... https://www.coingabbar.com/en/crypto-currency-news/update-on-taiwan-crypto-money-laundering-case-coinw-exchange?srsltid=AfmBOorBdkCis6Qe0PWPJ9bOg2YuAy49wiTTJCNgIojf9lMcwU746LFH

[2] Cryptonews. Taiwan Charges 14 in Record-Breaking $75M ... https://cryptonews.com/news/taiwan-charges-14-in-record-breaking-75m-crypto-laundering-case-using-coinw-exchange/

[4] Cryptonews. Binance Faces Mandatory Audit in Australia Over 'Serious' ... https://cryptonews.com/news/binance-faces-mandatory-audit-in-australia-over-serious-aml-and-terror-financing-concerns/