Comprehensive Probe Concludes with Charges in Major Taiwanese Crypto Fraud
In a significant development, Taiwanese authorities have concluded an extensive investigation into one of the nation’s most notorious cryptocurrency fraud cases. This investigation has led to charges being filed against 14 individuals associated with the BitShine exchange.
Prosecutors assert that these individuals collaborated with criminal networks to misappropriate NT$1.27 billion (around $41 million) from over 1,500 victims. This was achieved through a deceptive investment scheme intertwined with unauthorized cryptocurrency operations.
According to a report by Taiwan’s Central News Agency, BitShine masqueraded as a legitimate entity, having purportedly passed financial compliance audits. However, it used its brand to mask the activities of another company, Biying Technology, which lacked regulatory approval.
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Investigations reveal that these two entities conspired to channel customer funds into cryptocurrency purchases, primarily USDT, subsequently transferring the funds overseas via a complex series of transactions designed to conceal their origins.
Unraveling the Fraud Network’s Structure
Authorities identified a man named Shih as the mastermind behind the operation in Taiwan, with his spouse acting as the Asia-Pacific director and an associate named Yang overseeing business operations. Collaborating with organized crime groups, the network reportedly directed victims to deposit funds into wallets under their control. These funds were then laundered through multiple transaction layers, intentionally obscuring their trail.
Between January 2024 and April 2025, it is estimated that the operation laundered over NT$2.3 billion ($75 million), with NT$1.27 billion directly linked to the 1,539 identified victims. During raids earlier in the year, law enforcement confiscated NT$60.49 million in cash, 640,000 USDT, additional digital assets, and luxury items, including vehicles.
The group allegedly misled investors by claiming to be the exclusive exchange sanctioned by Taiwan’s Financial Supervisory Commission (FSC), a strategy that attracted substantial deposits. They reportedly opened more than 40 franchise-style outlets across Taiwan under the names CoinW and BiXiang Technology Co., Ltd., collecting over one million yuan in fees and using “deposit machines” to handle victims’ cash.
Legal Proceedings and Sentencing Recommendations
The Shilin District Prosecutor’s Office has formally charged Shih and 13 others with fraud, money laundering, offering unregistered virtual asset services, and forming a criminal organization as per Taiwan’s Organized Crime Prevention Act. Prosecutors are advocating for a 25-year prison term for Shih due to his unwillingness to plead guilty and his lack of remorse. Other defendants who have admitted guilt or agreed to return illegal gains may receive lighter sentences.
Apart from seizing the confiscated digital assets and cash, prosecutors have requested the court to mandate the forfeiture of NT$1.275 billion in criminal gains.
The case was supervised by Chief Prosecutor Luo Weiyuan, who underscored the suspects’ involvement in unauthorized financial activities that contravened Taiwan’s anti-money laundering regulations. The investigation also unveiled a separate scam targeting BitShine operators, where a man named Gu allegedly defrauded Shih and his associates of NT$3 million by falsely claiming he could secure anti-money laundering registration approvals. Gu has also been charged.
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