Taiwan Authorities Charge 14 in $41 Million BitShine Crypto Fraud Scheme

Crypto Crackdown: Taiwan Nets 14 in Multi-Million Dollar Scam

The Scheme Unraveled

Prosecutors allege BitShine promised investors outrageous returns through cryptocurrency mining and trading operations—the kind of promises that make traditional finance guys blush (if they weren't too busy counting their bonuses).

The Fallout

Authorities tracked the $41 million through multiple shell companies and offshore accounts, revealing a sophisticated money laundering operation that moved faster than most hedge fund managers during a market crash.

Regulatory Response Intensifies

The case signals Taiwan's growing crackdown on crypto fraud—proving that while blockchain might be decentralized, law enforcement definitely isn't.

TLDR

• Taiwan prosecutors charge 14 suspects in a $41 million BitShine crypto fraud case.

• The fraud group misused BitShine’s name to operate an unlicensed firm, Biying Technology.

• Victims were tricked into purchasing Tether, which was later laundered overseas.

• Prosecutors requested a 25-year sentence for the ringleader of the fraud operation.

Taiwan prosecutors have charged 14 individuals in connection with a major cryptocurrency fraud case involving the BitShine exchange. The scheme allegedly defrauded over 1,500 victims of NT$1.27 billion (approximately $41 million). The investigation, led by the Shilin District Prosecutor’s Office, revealed that the fraudsters operated under the guise of a legal and regulated exchange, BitShine, while secretly running an unlicensed entity, Biying Technology.

The group’s deceptive operations included recruiting victims to invest in cryptocurrency, particularly Tether, through a network of stores. The suspects used BitShine’s name, which had passed the Financial Supervisory Commission’s (FSC) regulations, to conceal the operation of Biying Technology, which had not received FSC approval.

Fraudulent Operations and Money Laundering Scheme

The fraudulent group, led by a man surnamed Shi, used various deceptive tactics to mislead investors. According to the investigation, the group instructed victims to purchase Tether using cash, then laundered the funds by converting them into US dollars and transferring them overseas.

The victims were also directed to transfer Tether into specific cold wallets. These transfers were disguised through multiple layers to obscure the money trail.

The operations spanned from January 2014 to April 2025, during which the group laundered more than NT$2.3 billion ($75 million). Despite the fraudulent nature of the activities, the perpetrators falsely claimed to be authorized by the Taiwanese financial authorities.

Prosecutors Charge Suspects and Request Sentencing

The Shilin District Prosecutor’s Office has indicted 14 people involved in the operation. Among the suspects are Shi, who is said to have orchestrated the operation, his wife Lin, and Yang, the business director.

The group recruited employees for various roles, including social editors and business developers, who worked for an unknown Chinese individual behind the scenes.

Prosecutors have requested a 25-year sentence for Shi, citing his denial of the charges and poor attitude post-crime. Yang and another suspect, Wang, have pleaded guilty and proposed to return the proceeds from the crime, which may result in lighter sentences. Lin and other personnel who admitted their involvement are expected to receive reduced sentences or suspended sentences due to their roles in the operation.