Taiwan

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Taiwanese authorities have wrapped up a major investigation into one of the country’s most high-profile crypto-related fraud cases, filing charges against 14 individuals linked to the BitShine exchange.

Prosecutors allege the group conspired with criminal networks to siphon NT$1.27 billion (approximately $41 million) from more than 1,500 victims through a scheme that combined fraudulent investment pitches with unlicensed cryptocurrency operations.

According to Taiwan’s Central News Agency, BitShine operated under the cover of legitimacy, having reportedly passed financial compliance checks, while using its brand to conceal the activities of another firm, Biying Technology, which had not been approved by regulators.

Investigators allege that the two entities worked in tandem to funnel customer deposits into crypto purchases, particularly USDT, before moving the funds overseas through a series of complex transfers designed to obscure their origins.

Structure of the Fraud Network

Prosecutors identified a man surnamed Shih as the head of the operation in Taiwan, with his wife serving as Asia-Pacific director and another suspect, surnamed Yang, responsible for business management.

Working with organized crime affiliates, the group allegedly instructed victims to transfer funds into wallets controlled by the network. The tokens were then routed through multiple layers of transactions in what officials described as deliberate efforts to launder the money and evade detection.

Between January 2024 and April 2025, investigators estimate the operation laundered more than NT$2.3 billion ($75 million). Of that, NT$1.27 billion was directly tied to 1,539 identified victims.

Law enforcement seized NT$60.49 million in cash, 640,000 USDT, additional digital assets, and luxury items including cars during raids earlier this year.

Authorities stated that the group misled investors by claiming to be the only exchange authorized by Taiwan’s Financial Supervisory Commission (FSC), a tactic that helped attract significant deposits.

They also reportedly established more than 40 franchise-style storefronts across Taiwan under the names CoinW and BiXiang Technology Co., Ltd., collecting over one million yuan in fees and deploying “deposit machines” to process victims’ cash.

Indictments and Sentencing Requests

The Shilin District Prosecutor’s Office indicted Shih and 13 others on charges of fraud, money laundering, providing unregistered virtual asset services, and organizing a criminal enterprise under Taiwan’s Organized Crime Prevention Act.

Prosecutors are seeking a 25-year sentence for Shih, citing his refusal to plead guilty and lack of remorse. Other defendants who confessed or pledged to return illicit gains may face reduced penalties.

In addition to confiscating the seized digital assets and cash, prosecutors have asked the court to order the forfeiture of NT$1.275 billion in criminal proceeds.

The case was overseen by Chief Prosecutor Luo Weiyuan, who emphasized that the suspects had conducted unlicensed financial operations in violation of Taiwan’s anti-money laundering laws.

The investigation also uncovered a separate fraud targeting the BitShine operators themselves. Prosecutors said a man surnamed Gu defrauded Shih and his associates of NT$3 million by falsely promising he could secure anti-money laundering registration approvals. Gu has also been indicted.

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