Taiwan Cracks Down on NT$2.3B Crypto Fraud Case, 14 Arrested

Taiwan has recently been hit by a major crypto fraud case that cheated thousands of people out of their money. Prosecutors are cracking down, and regulators have stepped up to tighten the rules to protect investors.

Here’s what has got the cryptocurrency industry talking.

Taiwan’s Largest Exchange Under Investigation

Taiwan’s largest virtual currency exchange, Bixiang Technology, is under investigation for allegedly facilitating a fraud ring that converted victims’ cash into virtual currency, as reported by the United Daily News.

Over just one year, the scam laundered NT$2.3 billion, affecting thousands of people. In April, authorities raided the operation, arresting 14 people. The investigation concluded today and indicted the individuals on charges of fraud, money laundering, and running a criminal syndicate.

Inside the Fake Crypto Franchise Fraud

The scheme was led by Shi Qiren, who illegally offered crypto services through an overseas exchange called CoinW. To make the operation look legitimate, Shi and his team opened more than 40 fake franchise stores across Taiwan and claimed to be government-approved.

Victims deposited cash into machines, which was converted into cryptocurrency and transferred abroad. The money was then passed through multiple layers of transactions to disguise the profits.

By April 2025, more than 1,500 people had been scammed. Fraud losses added up to NT$1.275 billion, while the total money laundering activity reached NT$2.3 billion.

Fraudsters Tricked by Another Scammer

In a twist, the fraudsters were also duped. A man named Gu convinced Shi’s group to pay him 3 million yuan for anti-money laundering services, which turned out to be fake.

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Prosecutors Push for 25-Year Term

Prosecutors say Shi has shown no remorse and are pushing for a 25-year prison sentence. They also want to seize NT$1.275 billion in illegal gains, including:

• 640,000 USDT
• Bitcoin, TRX holdings
• Over NT$60 million in cash
• Two luxury cars
• Over NT$100 million in bank deposits 

Shi and three others are facing trial in the Shilin District Court.

In another case, Taiwan’s Criminal Investigation Bureau uncovered a fraud ring linked to local gangs and partners in Cambodia. The group scammed at least 24 people with fake investment apps, stealing NT$20 million.

These cases highlight the growing risks of unregulated crypto services and the scale of damage fraud rings can cause.

Taiwan Tightens Crypto Oversight

Amid the rising fraud cases, Taiwan is also tightening crypto oversight in 2025.

Taiwan’s new AML rules for crypto firms have been in force since January 2025. All virtual asset service providers must complete registration by the end of September or face up to two years in jail and fines of NT$5 million (US$155,900).

The new rules require stronger management, better protection for consumers, and safer systems.

By pushing out bad actors and raising its standards, the regulators hope to build a safer market that protects investors and attracts more serious players.

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