A large cryptocurrency scam has occurred in Taiwan, causing damage to thousands of people and prompting serious investigations by authorities.
The case involving the largest cryptocurrency exchange in Taiwan and a sophisticated fraud network has highlighted the need for tightening regulation and protecting investors in the cryptocurrency sector.
MAIN CONTENT
Bixiang Technology is under investigation for large-scale money laundering and fraud.
The fraud network used the trick of faking franchise stores and international exchanges.
Taiwan tightens AML regulations, requiring registration and enhancing user protection.
How is the largest cryptocurrency exchange in Taiwan being investigated for fraud?
Bixiang Technology, the largest cryptocurrency exchange in Taiwan, is under investigation for possibly supporting a large-scale fraud network.
Within a year, this network laundered a total of 2.3 billion TWD, involving thousands of victims. In April, 14 people were arrested in a police raid. The investigation results have prosecuted individuals for fraud, money laundering, and organized crime.
The serious charges reflect the danger and complexity of the case, causing significant damage to the cryptocurrency market in Taiwan.
How does the model of fake cryptocurrency franchise stores operate?
The network led by Shi Qiren has exploited a foreign exchange platform called CoinW to provide illegal cryptocurrency services.
To create a legal facade, Shi and his accomplices opened more than 40 fake franchise stores across Taiwan, falsely claiming to have government approval. Victims deposited cash into machines that converted it into cryptocurrency, which was then transferred abroad through multiple layers of transactions to conceal the illicit profits.
By April 2025, more than 1,500 people fell into the trap with total damages amounting to 1.275 billion TWD, while the total laundered amount reached 2.3 billion TWD, demonstrating the scale and sophistication of the scam.
Data shows the serious scale of damage caused by the case.
"The application of multiple layers of transactions to hide the money trail is a sophisticated technique that requires coordination among authorities to unravel."
Mr. Le Minh Anh, financial cybersecurity expert, 2025
How was the fraud group also deceived in this case?
Even the fraud group was deceived when a person named Gu convinced them to pay 3 million RMB to provide fake anti-money laundering services.
This behavior highlights the complexity and sophisticated tricks in the criminal world related to cryptocurrency, showing the need for thorough investigations and enhanced controls.
What legal measures have prosecutors proposed against the perpetrators?
The prosecutor recommended a 25-year prison sentence for Shi due to his unrepentant attitude, and also proposed the confiscation of 1.275 billion TWD in illegal assets.
640,000 USDT
Bitcoin, TRX
Over 60 million TWD in cash
Two luxury cars
Over 100 million TWD in bank deposits
Shi and three other accomplices are facing trial at the Shilin District Court.
What has Taiwan done to prevent risks from illegal cryptocurrency services?
Since January 2025, Taiwan has enacted new anti-money laundering (AML) regulations for digital asset service providers.
All providers must register before September or face penalties including fines of up to 5 million TWD and prison sentences of up to 2 years. This is to enhance management, protect consumers, and ensure a safer operating system.
Eliminating bad actors and raising management standards will create a safer environment, increase investor confidence, and attract serious investors.
Taiwan Digital Asset Service Management Committee, 2025
Frequently Asked Questions
1. Why is Bixiang Technology being investigated?
The exchange is accused of supporting a fraud network, conducting large-scale money laundering by converting cash into illegal cryptocurrency.
2. How does the fraud network operate?
Using fake franchise stores and complex international exchanges to conceal the scammed and laundered money.
3. How will the perpetrators be prosecuted?
The prosecutor proposed a sentence of 25 years in prison and the confiscation of billions of TWD in assets related to the case.
4. What is important about Taiwan's new regulations on cryptocurrency?
Requiring registration of digital asset service providers and applying strict penalties to protect the market and consumers.
5. Are there any measures to protect individual cryptocurrency investors?
The state has strengthened regulation and requires providers to be transparent and secure to prevent fraud and risks.
Source: https://tintucbitcoin.com/dieu-tra-bitcoin-ethereum-vu-lua-23-ty/
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