Taiwan Targets Organized Crime's Digital Money Trail

The Taiwan Judicial Authorities have charged 14 individuals in connection with a major cryptocurrency money laundering operation, as part of an ongoing effort to dismantle organized crime networks adapting to digital financial systems. The investigation targeted a group allegedly involved in phishing, illegal gambling, and laundering proceeds amounting to approximately $75 million. The suspects, including high-ranking figures from the Tiandao and Sun criminal organizations, were detained after a coordinated law enforcement operation that culminated in arrests and the seizure of critical evidence, including over NT$2.83 million in cash, electronic devices, and financial records. The case underscores the increasing sophistication of criminal enterprises in the region and the government’s strategic response to counter such threats.

Among those arrested were Zeng Yingfu, leader of the Tiandao Alliance, known in criminal circles as “Tie Ba,” and his brother Zeng Yingjin, referred to as “Tai Bao.” Both were granted bail of NT$3 million and NT$2 million, respectively. Hong Ruihong, the deputy leader of the Sun Alliance, received a bail of NT$1 million. Two other suspects, identified by their surnames He and Gao, were also released on bail, with amounts set at NT$100,000 and NT$80,000. The suspects are currently under investigation for a range of offenses, including gambling, tax evasion, and organized crime. The financial scale of the alleged operations highlights the growing intersection of traditional crime and digital financial systems, particularly in the realm of cryptocurrency.

The operation reflects a broader shift in the nature of criminal activities in the region. Authorities have noted a decline in traditional violent crimes and a corresponding rise in fraud, illegal online gambling, and money laundering schemes. This trend has prompted law enforcement to adopt a multi-pronged strategy that includes targeting core leadership structures, tracing illicit financial flows, and imposing administrative penalties on businesses linked to criminal organizations. The government has also emphasized collaboration with financial institutions, telecom providers, and virtual asset service providers to strengthen oversight and detect suspicious transactions.

In response to the evolving threat landscape, the government has rolled out the “Anti-Fraud Blueprint 2.0,” an initiative aimed at enhancing legal, strategic, and organizational frameworks to combat new forms of fraud and money laundering. This strategy involves fostering public-private partnerships with industries such as financial services, e-commerce, and online gaming. The initiative also emphasizes leveraging technology and innovation to detect and prevent fraud in real-time. The involvement of multiple government agencies, including the Ministry of Justice, Ministry of Finance, and National Police Agency, demonstrates a coordinated and cross-sectoral approach to combating financial crime.

Commander Ma Shiyuan of the Executive Yuan’s Anti-Fraud Command Center has highlighted the importance of interagency cooperation in developing forward-looking fraud prevention strategies. He emphasized the Command Center’s role in leveraging technological resources and government coordination to protect public assets and maintain financial integrity. The National Police Agency reiterated its commitment to dismantling evolving criminal networks through a proactive, precise, and stringent enforcement approach. The ongoing efforts to trace and seize illicit funds, combined with legal reforms and enhanced surveillance mechanisms, indicate a long-term strategy to disrupt the financial lifelines of organized crime groups.

Source:

[1] Taiwan Authorities Crack Down on Organized Crime and Fraud Rings (https://www.mytaiwanlife.com/news/pages/en/4pMrGqC/taiwan-authorities-crack-down-on-organized-crime-and-fraud-rings/)