According to the media, Taiwan prosecutors have reportedly commenced an investigation into the largest ever money laundering case involving a brick-and-mortar virtual currency exchange, CoinW. The Taiwan prosecutors revealed that 14 individuals reportedly used CoinW to assist a fraud group in converting cash into virtual currency. In the span of one year, these individuals laundered $75 million targeting over 1539 victims.
The investigation, led by Chief Prosecutor Luo Weiyuan began in April, led to the detention of Shi Qiren and 14 other people on different charges. During the investigation, authorities seized 60.49 million yuan in cash, 640,000 USDT, and additional virtual assets. The prosecutors also concluded that these individuals are facing prosecution on suspicion of fraud, money laundering, and organized crime. In addition, they also requested the confiscation of 1.275 billion yuan of criminal proceeds.
Taiwan transfers the defendant to Judge Woodland Court
Three defendants currently in custody, including Shi Qiren, were transferred to the Judge’s Woodland Court today. The prosecution presented evidence indicating that Shi Qiren and others allegedly provided virtual asset services through the overseas exchange CoinW without the necessary approvals from the Financial Supervisory Commission. These affiliated stores had not completed the required registration for money laundering prevention. It claimed that they sought to attract funds under the guise of investment; however, the prosecution asserts that this may have been a fraudulent scheme.
Shi Qiren, together with his wife Lin Nu and Yang, the commercial director, worked collaboratively under the banner of coinW and Coinxiang Technology Co., Ltd. They obtained millions of franchise fees from more than 49 stores in Taiwan, and collected millions of yuan in franchise fees and facilitated cash collections through a cooperative preservation company’s deposit machine, named Gold.
The team then strategically converted these funds into USDT abroad and implemented a structured approach to manage the financial flows, which aimed to integrate and streamline their operations while maintaining compliance with regulations. The prosecution also pointed out that the group claimed its the only one licensed by the National Financial Management Committee, thereby attracting a large number of investors to visit.
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