Taiwan prosecutors indicted 14 people in the country’s largest crypto money laundering scheme worth NT$2.3 billion ($75 million).
According to a UDN report, the Shilin District Prosecutor’s Office concluded its investigation into a fraud ring that operated through fake Coin Exchange franchises, victimizing over 1,500 people in just one year.
Main suspect Shi Qiren faces up to 25 years in prison on charges of fraud, money laundering, and criminal organization, with prosecutors describing his post-arrest attitude as unrepentant and harmful to thousands of victims.
Authorities seized 640,000 USDT tokens, Bitcoin, TRX, NT$60.49 million in cash, luxury vehicles, and other assets totaling over NT$100 million, while seeking confiscation of NT$1.275 billion in criminal proceeds.
Sophisticated Franchise Network Exploited Regulatory Blind Spots
The criminal enterprise began operations in 2024 when Shi Qiren, his wife Ms. Lin, and business director Yang established what appeared to be legitimate crypto exchange services across Taiwan.
Their operation centered on opening more than 40 franchise stores under the names “CoinW” and “BiXiang Technology Co., Ltd.,” collecting franchise fees exceeding one million yuan from unsuspecting business partners.
The group installed “deposit machines” through cooperative security companies, creating professional-appearing infrastructure while collecting victim funds without Financial Supervisory Commission approval or mandatory anti-money laundering registration.
They operated without approval from Taiwan’s Financial Supervisory Commission and had not completed mandatory anti-money laundering registration. Yet, they boldly claimed to be “the only one authorized by the Financial Supervisory Commission in the country.”
This false authorization claim proved devastatingly effective, as many Taiwanese investors trusted what they believed was a government-sanctioned service provider in an industry known for regulatory uncertainty.
Once victim funds were collected, accomplices converted cash into cryptocurrency. They transferred it overseas to purchase USDT, creating complex transaction layers that Chief Prosecutor Luo Weiyuan said created deliberate “breakpoints in the currency flow.”
The operation maintained legitimate-appearing storefronts while running what prosecutors describe as ‘systematic fraud’ targeting Taiwan’s growing crypto-curious population.
Even within their own criminal network, deception was rampant as prosecutors discovered that Shi Qiren himself was defrauded of 3 million yuan by a man surnamed Gu, who promised to help legitimize the company’s anti-money laundering status.
Asia-Pacific Emerges as Money Laundering Enforcement Battleground
Taiwan’s record-breaking case is part of a broader pattern across the Asia-Pacific, where crypto money laundering schemes are becoming increasingly sophisticated and cross-border.
Two months earlier, Singapore authorities detained 49 suspects in a similar operation where criminals offered $400-$3,000 cash payments for cryptocurrency account access through Telegram and WhatsApp.
These criminals are systematically exploiting regulatory gaps between jurisdictions, using overseas exchanges to move funds while maintaining legitimate business appearances domestically.
Due to the growing money laundering threat, South Korea’s Financial Intelligence Unit has responded by commissioning research into stablecoin money laundering risks, acknowledging that traditional AML frameworks may be inadequate for emerging digital assets.
The timing of Taiwan’s major bust also coincides with regulatory tightening across the region, as authorities recognize that piecemeal enforcement allows sophisticated criminal networks to exploit the weakest regulatory links.
Yet the challenge extends beyond Asia, with recent developments suggesting these schemes are adapting to global enforcement efforts rather than being deterred by them.
Earlier this year, Luxembourg’s 2025 National Risk Assessment labeled crypto firms as “high-risk” for money laundering, citing the “decentralized, internet-based nature of operations” that complicates traditional oversight methods.
Crypto as a money laundering tool is a growing concern among regulators. Just today, Australian regulators mandated Binance audits over “serious concerns” about anti-money laundering controls, suggesting even established platforms face intensifying scrutiny.
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