In a significant crackdown on cryptocurrency fraud, Taiwanese officials have unveiled the details of an extensive investigation linked to the notorious BitShine cryptocurrency exchange. This case has resulted in charges against 14 individuals, underscoring the risks within the rapidly growing digital currency landscape.
Authorities estimate that these individuals orchestrated a scheme that defrauded more than 1,500 unsuspecting investors out of NT$1.27 billion (around $41 million). Using a combination of deceptive investment tactics and unauthorized cryptocurrency practices, the alleged perpetrators highlighted vulnerabilities within the regulatory framework governing cryptocurrency in Taiwan.
Reports from Taiwan’s Central News Agency indicate that despite appearing credible, BitShine had managed to bypass necessary financial compliance protocols, cleverly masking its operations behind another company, Biying Technology, which was unregulated.
Investigation details suggest that the group implemented a complex strategy. Initial funds were invested primarily in USDT, with subsequent transfers designed to obscure their trail, complicating the detection of illicit activities.
The Architecture of Deception
Authorities have identified a key figure in this operation, a man known as Shih, who along with his wife and another associate, Yang, played pivotal roles. Their collaboration with organized crime networks facilitated a systematic approach to siphoning funds from investors.
Victims were misled into transferring assets into wallets owned by the criminal organization. From there, tokens underwent multiple transactions, effectively laundering the money and evading law enforcement scrutiny.
Between January 2024 and April 2025, the network is suspected of laundering upwards of NT$2.3 billion ($75 million), with NT$1.27 billion directly connected to identified victims. In earlier raids, authorities recovered NT$60.49 million in cash, 640,000 USDT, various digital currencies, alongside luxury vehicles.
The group employed manipulative tactics to attract investments, mistakenly claiming to be the sole exchange recognized by Taiwan’s Financial Supervisory Commission (FSC). This misleading information significantly bolstered their customer deposits.
Moreover, over 40 franchise-style locations operating under the names CoinW and BiXiang Technology Co., Ltd. were discovered, amassing substantial fees. The implementation of “deposit machines” further facilitated the collection of victim funds.
Legal Proceedings and Future Implications
Indictments have been filed against Shih and his cohorts by the Shilin District Prosecutor’s Office. Charges include fraud, money laundering, the provision of unlicensed virtual asset services, and involvement in a criminal organization per Taiwan’s Organized Crime Prevention Act.
Prosecutors have proposed a 25-year prison sentence for Shih, highlighting his obstinacy against admitting guilt and his absence of remorse. Contrarily, co-defendants who cooperated may receive leniency in their sentences.
Beyond seizing digital assets and cash, the prosecution is also aiming for a court order to confiscate NT$1.275 billion considered criminal proceeds.
This investigation reveals serious flaws in the regulatory environment surrounding cryptocurrency operations in Taiwan, as noted by Chief Prosecutor Luo Weiyuan. Notably, the evidence also unveiled a related scam where a separate individual, surnamed Gu, swindled NT$3 million from the BitShine operators by falsely promising regulatory approvals, further complicating the case.
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