Taiwan charges 14 in unprecedented $72M crypto laundering bust

Taiwan has taken swift legal action, charging 14 individuals in connection with the country’s largest-ever crypto laundering scheme, which defrauded over 1,500 victims and funneled $72 million through illicit operations.

Prosecutors revealed that the scheme involved fraudulent crypto exchanges and deceptive cash-collection machines, which were disguised under the false brands “CoinW” and “CoinThink Technology Co., Ltd.”, operating illegally across Taiwan.

Prosecutors allege the ringleader, Shi Qiren, and his associates set up 40 storefronts and tricked unsuspecting investors into believing they were the only firms authorized by Taiwan’s Financial Supervisory Commission (FSC).

How the crypto laundering scheme operated

According to the Shilin District Prosecutor’s Office, suspects funneled illicit funds through a web of fraud, cash deposits, and cryptocurrency exchanges.

Millions in cash were allegedly collected via in-store deposit machines, later converted into foreign currency and channeled overseas to purchase Tether (USDT) via the local crypto exchange BiXiang Technology.

Authorities seized an impressive list of assets linked to the crypto laundering scheme:

• $39.8 million in suspected fraudulent proceeds

• $1.8 million in cash

• Bitcoin (BTC), Tether (USDT), and Tron (TRX) holdings

• Two luxury cars

• Bank deposits worth $3.13 million

“The scale and sophistication of this crypto laundering scheme marks a turning point for financial crime in Taiwan,” said Lee Ching-hsiu, an investigator at Taiwan’s Financial Supervisory Commission.

“This is a wake-up call that fraudsters are now blending traditional scams with high-tech blockchain tools.”

Ringleader faces 25-years sentence

The indictment names Shi Qiren as the alleged mastermind of the operation. Prosecutors argue Shi not only defrauded over 1,500 victims but also refused to plead guilty, exposing him to a possible 25-year prison sentence under Taiwan’s organized crime laws.

Shi and his wife allegedly worked with a manager surnamed Yang to expand the fraudulent operations by selling fake franchise licenses.

Victims paid hefty franchise fees, believing they were entering the lucrative digital asset industry legally.

Ironically, prosecutors say Shi himself was scammed out of $93,000 by another suspect who promised—but failed—to help secure anti-money laundering registration.

The case underscores Taiwan’s increasing vigilance against financial crime. Earlier this year, a crypto influencer received a one-year prison term for laundering money through a cryptojacking scheme, while in July, U.S. prosecutors revealed a Russian national laundered $530 million through American banks and crypto exchanges using USDT.

“This crypto laundering scheme is not just Taiwan’s problem—it reflects a global trend where digital currencies are exploited by organized crime,” said Elliptic analyst Tom Robinson, in an external report on crypto-related financial crimes.

Implications for investors and regulators

The fallout of this crypto laundering scheme highlights how fast-moving criminals can exploit regulatory gaps.

By posing as licensed operators, the suspects preyed on trust, siphoning millions from ordinary citizens eager to tap into Taiwan’s booming crypto market.

“Cases like these demonstrate the urgent need for stricter licensing, enhanced public awareness, and better cooperation between regulators and exchanges,” noted Chainalysis, in a recent analysis of Asia’s crypto crime surge.

For investors, the message is clear: verify platforms before committing funds. Authorities stress that Taiwan’s Financial Supervisory Commission does not authorize private companies to independently issue franchise licenses for crypto exchanges.

A warning for the global crypto industries

With over $72 million laundered and more than 1,500 victims defrauded, Taiwan’s record-breaking case sends a stark message. Criminals are innovating as fast as regulators, blending old-school scams with new digital tools.

The prosecution’s request for confiscation of cash, luxury assets, and crypto wallets reflects a growing international consensus: illicit digital finance will not be tolerated.

“The dismantling of this crypto laundering scheme shows Taiwan is stepping up enforcement and taking a leading role in Asia’s fight against financial crime,” said Patrick Tan, general counsel at Novum Alpha, in comments to CoinDesk.

As the trial unfolds, global regulators will be watching closely. Taiwan’s crackdown could become a blueprint for other nations seeking to curb the dark side of crypto adoption.