Taiwan Authorities Bust Massive NT$2.3B Crypto Fraud Ring - 14 Suspects Nabbed in Landmark Crackdown

Law enforcement strikes at the heart of a sophisticated cryptocurrency scam operation, exposing how fraudsters prey on investor optimism.

Massive Financial Impact

Authorities uncovered a staggering NT$2.3 billion fraud scheme—yet another reminder that where there's digital gold, there are always pickaxes waiting to exploit the hype.

Regulatory Momentum Builds

The arrest of 14 individuals signals growing regulatory teeth in combating crypto-related crimes, though skeptics might say it's like playing whack-a-mole with decentralized technology.

Market Implications

While legitimate projects build the future of finance, these cases give traditional finance executives yet another excuse to dismiss the entire ecosystem—as if Wall Street never saw a fraud case before.

Cleanup operations like this ultimately strengthen the ecosystem's credibility, proving that even in the wild west of digital assets, the sheriff eventually rides into town.

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 cryptocurrency 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. Both Shi and Gu are now facing trial.

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.