TLDR:
- Taiwan prosecutors indicted 14 people tied to a $2.3B crypto laundering case using CoinW franchises across the country.
- Authorities seized NT$60.49M in cash, 640,000 USDT, Bitcoin, TRX, and luxury cars linked to the laundering network.
- The fraud ring lured investors with fake claims of Financial Supervisory Commission approval, trapping over 1,500 victims.
- Prosecutors requested a 25-year sentence for ringleader Shi Qiren and confiscation of NT$1.275B in illegal proceeds.
The largest money laundering case in Taiwan’s crypto market has reached court. Prosecutors have indicted 14 people accused of running a vast laundering operation through CoinW exchange franchises.
The network reportedly moved NT$2.3 billion in one year, with more than 1,500 victims caught in the scheme. Authorities seized millions in cash, crypto assets, and luxury cars. The lead suspect, Shi Qiren, now faces a proposed 25-year prison sentence.
Crypto Laundering Case Shakes Taiwan
According to Wu Blockchain, prosecutors found that the group converted victims’ cash into virtual assets through CoinW stores. These outlets, run under Bixiang Technology, operated without regulatory approval.
Over 40 branches were set up across Taiwan, attracting investors with promises of safe, commission-backed operations. Instead, the stores served as collection points for fraud rings to channel cash into stablecoins.
Taiwan prosecutors are investigating the largest-ever money laundering case involving a brick-and-mortar virtual currency exchange. Fourteen individuals, using the CoinW exchange, assisted a fraud ring in converting cash into virtual currency. Over the course of a year, they…
— Wu Blockchain (@WuBlockchain) August 22, 2025
Investigators said franchise operators installed “deposit machines” with security firms, making it easy for victims’ funds to be handed over. The money was then exchanged for USDT and transferred overseas. Multiple transfers were used to hide the source and flow of funds. Prosecutors said this created layers of breakpoints designed to obscure the money trail.
Prosecutors revealed the group also lied about being the only operator licensed by the Financial Supervisory Commission. That false claim convinced thousands of people their investments were safe. By April this year, the fraud affected 1,539 people with losses of NT$1.275 billion.
Chief Prosecutor Luo Weiyuan confirmed the ringleader and his close associates divided responsibilities. While Shi controlled strategy, others managed franchises and investor recruitment. The plan, prosecutors argued, was a coordinated criminal operation.
Prosecutors Seek Confiscation of Assets and Harsh Sentences
Court filings show prosecutors have requested confiscation of NT$1.275 billion in crime proceeds.
Assets already seized include 640,000 USDT, Bitcoin, TRX, NT$60.49 million in cash, luxury cars, and bank deposits worth over NT$100 million. Authorities said the remaining balance will be collected later.
Prosecutors said Shi Qiren showed no remorse, refusing to admit guilt even after arrest. They argued his actions inflicted both financial and psychological harm on victims. Because of that, they are seeking a maximum sentence of 25 years.
The indictment also includes Shi’s wife, a business director named Yang, a shareholder surnamed Wang, and other accomplices. Each faces fraud charges, violations of Taiwan’s Anti-Money Laundering Act, and crimes under the Organized Crime Prevention Act.
The investigation even found Shi himself was deceived by a man surnamed Gu. Prosecutors said Gu tricked Shi into paying NT$3 million for help with money laundering registration. Gu has also been indicted for fraud, bringing the total number of defendants to 14.
This case, according to Taiwan’s United Daily News, marks the largest-ever prosecution involving virtual asset exchanges in the country.
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Source: https://blockonomi.com/taiwan-indicts-14-in-2-3b-coinw-crypto-laundering-scandal/