Update, Aug. 22, 12:54 pm UTC: This article has been revised to incorporate CoinW exchange’s response to the indictment.
Taiwanese authorities have reportedly indicted 14 individuals in what is described as the nation’s largest cryptocurrency money laundering case, involving over 1,500 victims and more than $70 million in illicit proceeds.
The Shilin District Prosecutor’s office charged the 14 with offenses related to fraud, money laundering, and organized crime, seeking the confiscation of 1.275 billion New Taiwan dollars ($39.8 million), which was allegedly acquired from victims through fraudulent means, according to a Friday report from local news outlet UDN.
Prosecutors also called for the confiscation of an additional 640,000 USDt (USDT), undisclosed Bitcoin (BTC), and Tron (TRX) holdings, over $1.8 million in cash, and two luxury vehicles. They reportedly seized bank deposits amounting to $3.13 million, with additional proceeds expected to be recovered later.
The accused were charged with laundering $71.9 million obtained from unsuspecting victims in cash, which was then converted into foreign currency and transferred overseas to purchase USDT via Taiwanese cryptocurrency exchange BiXiang Technology.
The prosecution released a money laundering flow chart alongside the indictment to illustrate the group’s operations.
Authorities commenced the investigation in April when the 14 individuals were apprehended, including ringleader Shi Qiren, who may face a 25-year prison sentence as the primary suspect in the scam and for refusing to plead guilty, according to UDN.
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Over 1,500 victims defrauded via an unlicensed crypto exchange
Prosecutors alleged that since 2024, Qiren, his spouse, and a manager with the surname Yang teamed up to operate 40 locations throughout Taiwan under the “CoinW” and “CoinThink Technology Co., Ltd.” brands, collecting millions in franchise fees before using a partner company to establish deposit machines for cash collection from victims.
They purportedly presented themselves as the sole firm authorized by Taiwan’s Financial Supervisory Commission, defrauding 1,539 individuals of $71.9 million through franchise fees and cash collection systems.
The group also fell prey to another fraud scheme, according to prosecutors, when another suspect, surnamed Gu, allegedly deceived Shi into paying $93,000 with false assurances of securing Anti-Money Laundering registration.
CoinW denied any association with the money laundering case, asserting that “the company’s management has never participated in any illegal money laundering or fraudulent activities.”
For any accounts or transactions linked to fraud or money laundering, the platform will pursue legal measures for their disposal, stated the cryptocurrency exchange in a Friday communication.
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The indictment arrived just days after a crypto influencer was sentenced to a year in prison for money laundering and wire fraud after defrauding two significant cloud computing providers in a large-scale cryptojacking operation.
A month prior, a Russian citizen allegedly laundered $530 million through US banks and crypto exchanges using USDT to facilitate payments for Russian clients linked to sanctioned banks, Cointelegraph reported on July 17.
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