Taiwanese prosecutors have charged 14 people in connection with what they describe as the country’s biggest cryptocurrency money laundering case to date. The group is accused of defrauding over 1,500 victims and laundering close to $72 million in funds.
Meanwhile, the Shilin District Prosecutor’s Office filed the indictment on charges including fraud, money laundering, and organized crime. Prosecutors requested the seizure of assets worth 1.275 billion New Taiwan dollars (about $39.8 million), along with additional crypto and cash assets.
Crypto, Cash, and Assets Seized Across Multiple Fronts
Alongside the cash confiscation request, prosecutors also asked the court to freeze 640,000 USDT, as well as undisclosed amounts of Bitcoin and Tron. They also seized $1.8 million in physical cash, two luxury vehicles, and over $3.1 million held in bank accounts. More funds are expected to be recovered as the investigation continues.
The group allegedly converted stolen cash into foreign currencies, then used those funds to buy stablecoins like USDT through local crypto firm BiXiang Technology. The entire process was detailed in a money flow chart shared by prosecutors during the indictment announcement.
Suspects Used Fake Licensing Claims to Run Cash Scheme
Investigators said the fraud ring operated through two companies — “CoinW” and “CoinThink Technology Co., Ltd.” — and opened about 40 storefronts across Taiwan. These businesses claimed to be licensed by Taiwan’s Financial Supervisory Commission, though no such authorization was ever granted.
Prosecutors believe the operation was led by a man named Shi Qiren, who worked closely with his wife and a manager surnamed Yang. They allegedly collected franchise fees and installed deposit machines to gather cash directly from victims. Over 1,500 people were reportedly misled by the scheme.
The investigation began in April, leading to the arrest of all 14 suspects. Authorities say Qiren refused to enter a guilty plea and may face up to 25 years in prison if convicted as the lead organizer.
Suspects Also Lost Funds in Separate Fraud
Prosecutors also reported a side case where Qiren was allegedly tricked by another suspect, surnamed Gu, who charged him $93,000 in return for a fake Anti-Money Laundering registration. This amount was paid during the setup of the operation and was never returned.
The case adds to a growing number of enforcement actions involving crypto crime in Taiwan and abroad. Earlier this month, a separate crypto influencer received a prison sentence in a fraud case involving cloud computing services.
In July, authorities in the U.S. charged a Russian citizen with laundering $530 million using crypto tied to sanctioned banks.
