Taiwan Prosecutors Indict 14 in Alleged $72M Crypto Laundering Case Involving USDT

• 14 people indicted in Taiwan’s largest alleged crypto laundering scheme

• Authorities say 1,539 victims lost roughly $71.9 million via franchise fees and cash deposit machines.

• Prosecutors requested NT$1.275 billion (~$39.8M), seized cash, cars, bank deposits and tagged USDT, BTC and TRX holdings.

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Taiwanese prosecutors have reportedly indicted 14 people accused of orchestrating the country’s largest money laundering case involving a cryptocurrency exchange.

Taiwanese prosecutors have indicted 14 people in what they say is the country’s largest-ever cryptocurrency money laundering case, involving more than 1,500 victims and over $70 million in alleged illicit proceeds.

The Shilin District Prosecutor’s Office indicted 14 individuals on charges including fraud, money laundering and organized crime, and requested the confiscation of NT$1.275 billion (about $39.8 million) allegedly obtained from victims through fraud, according to local reporting citing the prosecutor’s office.

Prosecutors requested confiscation of 640,000 USDT, undisclosed Bitcoin (BTC) and Tron (TRX) holdings, more than $1.8 million in cash, two luxury cars, and reported seizing bank deposits totaling $3.13 million. Officials say the remainder of proceeds will be recovered through continuing investigations.

Money laundering flow chart. Source: Shilin District Prosecutor’s Office, UDN.

What is the scope of the Taiwan crypto money laundering case?

The Taiwan crypto money laundering case is alleged to have defrauded 1,539 people of roughly $71.9 million through franchise sales and cash deposit machines, then converted funds into foreign currency and stablecoins via a Taiwanese crypto exchange, prompting a large-scale indictment and multi‑million dollar seizure requests.

How did prosecutors say the scheme operated?

Prosecutors allege the ringleader, identified as Shi Qiren, his wife and partners opened 40 stores under brands “CoinW” and “CoinThink Technology Co., Ltd.” from 2024, collected franchise fees, then used deposit machines and partner firms to collect cash from victims.

Authorities say cash was converted to foreign currency, then used to buy USDT through a local exchange. The indictment includes a flow chart released by the Shilin District Prosecutor’s Office illustrating transfers, conversions, and overseas transfers.

What assets did authorities target for seizure?

In the indictment prosecutors requested confiscation of NT$1.275 billion (~$39.8M), 640,000 USDT, undisclosed BTC and TRX, $1.8M+ in cash, two luxury vehicles, and reported seizing $3.13M in bank deposits. Asset recovery is ongoing.

Why were franchise stores used in the alleged scheme?

Prosecutors say the group used franchise stores and public-facing brands to cultivate trust, collect franchise fees, and deploy cash deposit machines that funneled victim funds into accounts later converted into cryptocurrency, a tactic that can mask origin and create layers for laundering.

When did arrests and charges occur?

Authorities launched the probe in April after arrests of 14 individuals. The Shilin District Prosecutor’s Office filed indictments and released supporting documentation, including the money laundering flow chart and asset lists. The ringleader faces substantial prison exposure if convicted.

Frequently Asked Questions

Who is the alleged ringleader and what charges does he face?

The suspected ringleader, named in local reports as Shi Qiren, is charged with organizing fraud and money laundering; prosecutors say he may face up to 25 years if convicted, based on the scale and his alleged role in the operation.

How will victims be compensated if funds are recovered?

Recovered assets may be subject to court-ordered confiscation and restitution processes. Victims typically need to file claims with prosecutors or through bankruptcy and asset‑recovery channels established during prosecution.

Key Takeaways

• Scale and scope: Alleged $71.9M fraud affecting 1,539 victims across Taiwan.
• Modus operandi: Franchise stores, cash deposit machines and local crypto exchange purchases were used to convert funds.
• Next steps: Ongoing prosecutions, asset seizures and forensic tracing aim to recover proceeds and pursue convictions.

Conclusion

The alleged Taiwan crypto money laundering case highlights how offline collection points and local exchange conversions can be used to launder large sums. The Shilin District Prosecutor’s Office is pursuing confiscation and criminal charges while continuing asset tracing; readers should monitor official updates from the prosecutor’s office for outcomes and restitution details.