Taiwan prosecutors have indicted 14 individuals related to BitShine exchange over a case linked to the country’s largest virtual currency exchange. The group allegedly used CoinW exchange franchises to convert cash from fraud victims into virtual assets.
Over the course of a year, authorities say the operation laundered approximately $75 million and affected 1,539 people. Prosecutors described the scheme as highly coordinated, with a clear chain of command among suspects.
How the Scheme Worked?
Investigators found the group set up more than 40 CoinW branches under Bixiang Technology as per United Daily News. The stores promised safe, commission-backed crypto services. Instead, they acted as collection points for cash, which was then converted into USDT and sent overseas.
Franchise operators installed deposit machines with security firms, easing the transfer of funds. Multiple transactions were used to hide the trail, prosecutors said. The group also falsely claimed to be licensed by the Financial Supervisory Commission, which convinced investors their money was secure.
Shi Qiren, the lead suspect and alleged mastermind of the operation, planned the overall strategy. “The suspects divided responsibilities,” Chief Prosecutor Luo Weiyuan further explained, “While Shi Qiren planned the strategy, others managed branches and recruited investors. This was a coordinated criminal enterprise.”
Millions of Assets Seized
Authorities have already seized assets including 640,000 USDT, Bitcoin, TRX, NT$60.49 million in cash, luxury cars, and over NT$100 million in bank deposits. Prosecutors are seeking confiscation of NT$1.275 billion and a maximum sentence of 25 years for the lead suspect, Shi Qiren, who showed no remorse.
Shi’s wife, a business director named Yang, a shareholder surnamed Wang, and other associates are also charged under fraud, Taiwan’s Anti-Money Laundering Act, and the Organized Crime Prevention Act.
This case shows the risks of unregulated crypto exchanges. It could lead authorities to act more strictly against money laundering. The prosecution may also affect rules for crypto operations in Taiwan and push for stronger investor protections.
The prosecution reveals the risks of operating crypto exchanges without oversight. It could discourage similar scams and push exchanges to follow rules, affecting Taiwan’s crypto market.
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