Taiwan Prosecutors Indict 14 in $71.9M Crypto Laundering Scheme Affecting 1,500 Victims

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Friday, Aug 22, 2025 3:39 pm ET1min read
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Aime RobotAime Summary

- Taiwan prosecutors indicted 14 individuals in a $75M crypto laundering scheme involving CoinW and BitShine Technology, targeting 1,500 victims via fake firms and unlicensed exchanges.

- The operation used 40 franchises, cash machines, and BiXiang Technology to convert stolen funds into USDT, with authorities seizing 640,000 USDT, $1.8M cash, and luxury assets.

- Key suspect Shi Qiren faces 25 years in prison for non-cooperation, while the case exposed regulatory gaps in managing unlicensed virtual currency operations.

- Taiwan is strengthening crypto compliance protocols amid global trends to combat digital asset-related financial crimes and tighten oversight of unlicensed exchanges.

Taiwanese authorities are moving to dismantle what has been identified as the largest cryptocurrency money laundering operation in the region, involving 14 individuals and over NT$2.3 billion ($75 million) in illicit funds. The Shilin District Prosecutor’s Office has indicted the group, which operated under the names CoinW and BitShine Technology, on charges of fraud, money laundering, and running a criminal syndicate [1]. The alleged scheme exploited fake cryptocurrency firms and unlicensed exchanges to siphon and launder funds from over 1,500 victims [1].

According to the investigation, the suspects established 40 franchise locations and used cash deposit machines to extract money from victims, falsely claiming authorization from Taiwan’s Financial Supervisory Commission. The funds were then laundered through foreign currency exchanges and the unlicensed BiXiang Technology platform, where they were converted into USDT [1]. Prosecutors have confiscated a significant amount of assets, including 640,000 USDT, an unspecified quantity of

Bitcoin
and Tron, $1.8 million in cash, two luxury vehicles, and $3.13 million in bank deposits. Authorities have also requested the confiscation of NT$1.275 billion in assets allegedly obtained through the scheme [1].

One of the primary figures in the case,

Shi
Qiren, faces up to 25 years in prison and has not cooperated with the investigation. His wife and a manager, surnamed Yang, were also implicated in the operation. The case also involves another suspect, surnamed Gu, who defrauded Shi by offering false promises of Anti-Money Laundering (AML) registration in exchange for $93,000 [1].

The Financial Supervisory Commission reported a sharp decline in liquidity related to CoinW and BitShine as affected parties lost access to their funds. On-chain data further indicated significant asset freezes as the investigation progressed. The scale of the case has drawn attention to the inadequacy of previous regulatory frameworks in managing unlicensed virtual currency operations [1].

The crackdown is part of a broader global trend to tighten regulations on cryptocurrencies and combat financial crimes. In response to the case, Taiwan is reportedly updating its compliance protocols, imposing penalties, and engaging in ongoing consultations to strengthen oversight. The situation highlights the increasing regulatory focus on unlicensed exchanges and the growing sophistication of financial crimes involving digital assets [1].

Source: [1] Taiwan prosecutors indict 14 in $71.9M crypto money laundering case affecting 1,500 victims

https://cointelegraph.com/news/taiwan-prosecutors-indict-14-72m-money-laundering-case-1-500-victims