According to local media, the Taiwan prosecutor has just prosecuted 14 individuals related to the largest money laundering case in the country's history, through a crypto exchange with physical stores. The case involves the CoinW exchange and the company "幣想科技有限公司" (Bixiang Technology), with the amount laundered estimated to reach 23 billion New Taiwan dollars (about 75 million USD) in just one year, causing damage to more than 1,539 victims.
Sophisticated tactics, opening over 40 stores throughout Taiwan
According to the indictment, the criminal group led by Shi Qiren exploited the name CoinW and Bixiang Technology to open over 40 physical stores across Taiwan, while charging franchise fees in the millions of New Taiwan dollars. These stores were equipped with "cash receiving machines" to accept victims' money, which was then converted into USDT through cross-border transactions. This group also created multiple layers of transactions to conceal the flow of money and its illegal origins.
The prosecutor stated that the suspects forged information, advertising as "the only entity licensed by the Financial Supervisory Commission of Taiwan (FSC)", in order to attract investors. In reality, this was a scam tactic of an organized money laundering ring.
Severe scale of damage
Since 2024, this group has helped convert illegal cash for the scam ring, affecting more than 1,539 victims with a total embezzlement amounting to 12.75 billion New Taiwan dollars (over 390 million USD). Meanwhile, the total amount laundered through this system is estimated to be around 23 billion New Taiwan dollars (about 75 million USD).
Additionally, the prosecutor discovered that the suspects had previously been scammed by a man with the surname Gu for 3 million New Taiwan dollars when this person promised to help the company complete anti-money laundering registration procedures but actually embezzled the amount.
Prosecuting 14 defendants, requesting a 25-year prison sentence for the ringleader
The Shilin District Prosecutor's Office has prosecuted 14 individuals, including Shi Qiren, his wife, and other key members for fraud, providing illegal virtual asset services, money laundering, and violating the Organized Crime Prevention Act. Gu was additionally prosecuted for fraud.
The prosecutor requested a heavy sentence, up to 25 years in prison for Shi Qiren due to his insincere attitude and the consequences faced by thousands of victims.
Seizing a series of huge assets
Authorities have seized assets worth more than 1 billion New Taiwan dollars, including 640,000 USDT, large amounts of BTC, TRX, over 60 million New Taiwan dollars in cash, two luxury cars, and many other assets. In total, the prosecutor demands the confiscation of all criminal proceeds amounting to 12.75 billion New Taiwan dollars and will continue to recover the shortfall.
This is seen as a warning bell about the risks of participating in unlicensed cryptocurrency exchanges, especially in virtual investment schemes exploited by criminal groups to commit fraud and money laundering.