Taiwan has sentenced the alleged ringleader behind CoinThink Technology, the operator of crypto exchange CoinThink Technology, to 22 years in prison for orchestrating a NT$1.27 billion (~$39 million) crypto fraud and money laundering scheme that prosecutors say defrauded more than 1,500 victims.
According to a local news report, the Shilin District Court sentenced the defendant, identified only by the surname Shih, after finding him guilty of illegally providing virtual asset services, fraud, and money laundering. The ruling can still be appealed.
The case is one of Taiwan’s largest crypto-related fraud prosecutions and comes as authorities tighten oversight of the country’s digital asset industry.
How the scheme operated
According to prosecutors, CoinThink Technology worked with fraud rings and gang affiliates to move victims’ money through cryptocurrency transactions. Investigators said the group falsely claimed BitShine was the only cryptocurrency exchange authorized by Taiwan’s Financial Supervisory Commission (FSC).
Victims were instructed to use cash to purchase Tether (USDT), which was then converted into U.S. dollars and transferred overseas, prosecutors said. They were later directed to send USDT to designated cold wallets, while multiple transfers were used to obscure the movement of funds.
Local media also reported that BitShine hired compliance personnel to establish know-your-customer (KYC) procedures. Prosecutors alleged that intermediaries coached members of fraud rings on how to complete those checks, allowing victims to proceed with crypto purchases.
More than NT$2.3 billion laundered in total
Prosecutors estimate that between January 2024 and April 2025, the organization laundered more than NT$2.3 billion (about $71 million).
Prosecutors estimate the group laundered more than NT$2.3 billion (about $71 million) between January 2024 and April 2025. Authorities identified 1,539 victims who collectively lost more than NT$1.27 billion ($39 million). Investigators said cryptocurrency transactions and overseas transfers were used to complicate efforts to trace the proceeds.
In August 2025, prosecutors indicted 14 people, including Shih, and sought a combined prison sentence of 25 years. Prosecutors said Shih denied the allegations during the investigation
Taiwan tightens crypto oversight
The sentencing comes as Taiwan strengthens regulation of the cryptocurrency sector following a series of high-profile fraud cases.
This year itself, in May, Taiwanese prosecutors indicted a television news anchor and six active or retired military personnel over an alleged China-linked espionage scheme in which USDT was allegedly used to pay for politically influenced media content and classified military documents.
Further, earlier this month, Taiwan enacted the Virtual Asset Services Act, introducing a licensing framework for crypto firms and stablecoin issuers. The law requires virtual asset service providers to obtain approval from the FSC and establishes rules covering licensing, business operations, and customer asset protection.
The court’s ruling can be appealed, while legal proceedings against the remaining defendants indicted in the case are ongoing.
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