Taiwan's largest physical cryptocurrency trading company, 'Bitshine Technology,' was found by investigators to be colluding with a fraud group, helping victims exchange cash for cryptocurrency, laundering 2.3 billion yuan in just one year. In April of this year, investigators launched a search operation, detaining Shi Qiren and 14 others. The Shilin District Prosecutor's Office concluded the investigation today (22nd), prosecuting 14 defendants for fraud, money laundering, and organized crime, and recommending that the court sentence Shi Qiren to 25 years in prison.
The prosecution pointed out that Shi Qiren, who has connections to the Tian Dao Alliance Justice Society, first acquired Bitshine Technology using CoinW funds equivalent to 19.2 million USDT to obtain the 'shell' for the Financial Supervisory Commission's anti-money laundering registration, then set up over 40 franchise stores across 14 counties in Taiwan to sell USDT.
Franchisees not only need to pay a franchise fee of one million yuan but also have to pay a security deposit ranging from hundreds of thousands. Ultimately, all funds are transferred to a specific company account and exchanged into US dollars to repurchase USDT, flowing into CoinW wallets and anonymous wallets, with multiple breakpoints making it difficult for the police to trace.
Investigators found that Bitshine Technology claimed to be the 'only authorized by the Financial Supervisory Commission' and collaborated with gang members to introduce resources from a fake investment fraud group, guiding victims to bring cash to purchase USDT in stores. After depositing, the funds were transferred to a company account controlled by a man surnamed Wang, exchanged into US dollars, and then used to buy USDT, which flowed to CoinW wallets and eventually into anonymous wallets. On the other hand, they further lured victims to transfer USDT into wallets designated by the fraud group, creating multiple transfers to cover up the flow of criminal proceeds.
Prosecutors reported that from January 2024 to April this year, a total of 1,539 people in Taiwan were victims, with losses amounting to 1.275 billion yuan, and money laundering exceeding 2.3 billion yuan.
Division of labor among the 14 defendants
Investigators traced the roles of the 14 defendants, with main suspect Shi Qiren leading the acquisition of Bitshine Technology, responsible for franchise expansion and 'market' operations, and introducing resources from the fraud group; the APAC Business Director of CoinW, a man surnamed Yang, was in charge of business development, coordinating with the fraud group and managing customer sources for the 'market'; the cash flow aspect was controlled by a man surnamed Wang, who established a company and controlled bank accounts and the 'deposit machine' system, specifically responsible for cash exchanges, purchasing USDT, and redistributing to various stores.
Shi Qiren's wife, surnamed Lin, serves as the APAC Marketing Director for CoinW, managing marketing activities and exhibitions to promote CoinW in Taiwan. Men surnamed Huang, Hsu, and Li are responsible for business development at CoinW, specifically recruiting KOLs and agents, earning commissions based on trading volume. A man surnamed Chen serves as product manager, maintaining the website and handling user issues. Another man surnamed Chen is a community editor, managing Facebook, IG, and LINE groups to promote CoinW and Bitshine Technology.
In operating the stores, the prosecution found that the Keelung store was managed by a man surnamed Luo, while the Taipei Xinyi store was run by a man surnamed Su, who directly interacted with victims, completing transactions through 'cash exchange for USDT.' On the surface, the company had a 'compliance officer' named Ms. Ye responsible for designing the KYC system, but in reality, it was merely a formality; Mr. Cai, although nominally the risk control supervisor overseeing withdrawal approvals, had long been bypassed by the fraud group.
In addition, investigators found that the suspects, including a man named Shi, were deceived by a man surnamed Gu, who claimed to have connections with the brother of the director of the Financial Supervisory Commission. He falsely claimed he could assist in passing the anti-money laundering registration and defrauded them of 3 million yuan.
The main suspect denies the charges.
Facing the allegations, Shi Qiren firmly denied involvement in the fraud, arguing that he was merely 'acquiring companies and operating franchises' and that his funding was borrowed. The men surnamed Yang and Wang admitted that there was indeed a high overlap between CoinW and Bitshine but claimed it was only 'business cooperation and cash flow coordination.' Most of the other defendants emphasized that they were merely 'employees' and knew nothing about the fraud gang behind the scenes. As for Ms. Ye and Mr. Cai, they defended themselves by stating that while the KYC procedure fell within their responsibilities, they were unaware that the fraud gang had already 'trained' the victims on how to respond. Another man surnamed Gu even countered, claiming that he was the victim, stating that the 3 million yuan was just a consultancy fee.
After a large-scale search, investigators seized over 640,000 USDT, 0.0356 Bitcoins, and 1,520 TRX, worth approximately 20 million New Taiwan dollars; they also recovered 60.49 million yuan in cash, one Ferrari Roma, one Maserati, and 12.4 million yuan in company account deposits, totaling about 113 million yuan. The prosecution has applied to the court to declare the assets forfeited or to pursue the value legally.
The prosecution today indicted Shi, Yang, Wang, Lin, and 14 others for fraud, organized crime, money laundering, and other crimes, and requested the forfeiture of 1.275 billion yuan in criminal proceeds; Mr. Gu was additionally indicted for fraud.
Prosecutors stated that Shi Qiren denied the charges, showing poor attitude after the crime, and sought a 25-year prison sentence; both Yang and Wang pleaded guilty and proposed plans to return the criminal proceeds, which could lead to sentence reductions according to regulations. Ms. Lin and other involved personnel admitted their crimes, and considering they were salaried employees, the prosecution requested leniency and probation. Mr. Gu denied the charges, and his actions have harmed the image of public servants, resulting in a 5-month prison sentence to serve as a warning.
"'Bitshine Technology' colluding with a fraud group to launder 2.3 billion! Prosecutors indict 14 people and seek 25 years for the main suspect." This article was first published on (Block客).
