Summary of the BitShine case (or CoinW / BiXiang Technology)

Charges filed

Taiwanese authorities have prosecuted 14 people on charges of fraud, money laundering, and organized crime, stemming from a scheme that quickly defrauded more than 1,500 people for a total of NT$1.27 billion, equivalent to over US$41 million

Fraud operation

The defendants operated under the name BitShine, although they also used identities such as CoinW and BiXiang Technology. These firms presented themselves as accredited companies to the Financial Supervisory Commission (FSC), but actually lacked legal authorization

Scam and money laundering mechanism

More than 40 physical locations were established, supposedly franchises, where victims deposited cash (franchise and deposits) that was then converted into USDT. This crypto asset was transferred to 'cold wallets' managed by the group, while the money was converted into dollars and sent abroad

Amounts and seized assets

Prosecutors have requested the confiscation of NT$1.275 billion (~US$39.8 million) obtained illegally. USDT, cash, additional cryptocurrencies (such as Bitcoin or Tron), luxury vehicles, and bank deposits (valued in millions) were also seized

Responsible parties and sentencing requests

The leader of the scheme, with the surname Shih (Shi Qiren), faces up to 25 years in prison, after showing little cooperation in the investigation. Other involved parties who pleaded guilty or are cooperating may receive lighter penalties

Regulatory context and institutional response

The case marks one of the most significant crypto frauds in Taiwan, in terms of scale and sophistication

In response, the FSC has announced the implementation of inspections within virtual asset operators. It is also cooperating with the Taiwan Virtual Asset Service Provider Association (VASP) to reinforce ethical standards and self-regulation in the sector

These measures are part of a broader push to enforce anti-money laundering (AML) controls, with new regulations requiring mandatory registration of crypto services and penalties for those operating without authorization