$41M Crypto Scam Exposed: Taiwan Indicts 14 in BitShine Fraud Case
Taiwanese authorities have wrapped up a serious investigation into one of many nation’s most high-profile crypto-related fraud instances, submitting costs towards 14 people linked to the BitShine alternate.
Prosecutors allege the group conspired with prison networks to siphon NT$1.27 billion (roughly $41 million) from greater than 1,500 victims via a scheme that mixed fraudulent funding pitches with unlicensed cryptocurrency operations.
In line with Taiwan’s Central Information Company, BitShine operated underneath the quilt of legitimacy, having reportedly handed financial compliance checks, whereas utilizing its model to hide the actions of one other agency, Biying Know-how, which had not been authorized by regulators.
Investigators allege that the 2 entities labored in tandem to funnel buyer deposits into crypto purchases, significantly USDT, earlier than shifting the funds abroad via a collection of complicated transfers designed to obscure their origins.
Construction of the Fraud Community
Prosecutors recognized a person surnamed Shih as the pinnacle of the operation in Taiwan, along with his spouse serving as Asia-Pacific director and one other suspect, surnamed Yang, accountable for enterprise administration.
Working with organized crime associates, the group allegedly instructed victims to switch funds into wallets managed by the community. The tokens have been then routed via a number of layers of transactions in what officers described as deliberate efforts to launder the money and evade detection.
Between January 2024 and April 2025, investigators estimate the operation laundered greater than NT$2.3 billion ($75 million). Of that, NT$1.27 billion was straight tied to 1,539 recognized victims.
Regulation enforcement seized NT$60.49 million in money, 640,000 USDT, extra digital belongings, and luxurious objects together with automobiles throughout raids earlier this 12 months.
Authorities acknowledged that the group misled investors by claiming to be the one alternate approved by Taiwan’s Monetary Supervisory Fee (FSC), a tactic that helped appeal to vital deposits.
Additionally they reportedly established greater than 40 franchise-style storefronts throughout Taiwan underneath the names CoinW and BiXiang Know-how Co., Ltd., gathering over a million yuan in charges and deploying “deposit machines” to course of victims’ money.
Indictments and Sentencing Requests
The Shilin District Prosecutor’s Workplace indicted Shih and 13 others on costs of fraud, cash laundering, offering unregistered digital asset companies, and organizing a criminal enterprise underneath Taiwan’s Organized Crime Prevention Act.
Prosecutors are searching for a 25-year sentence for Shih, citing his refusal to plead responsible and lack of regret. Different defendants who confessed or pledged to return illicit positive aspects could face decreased penalties.
Along with confiscating the seized digital belongings and money, prosecutors have requested the courtroom to order the forfeiture of NT$1.275 billion in prison proceeds.
The case was overseen by Chief Prosecutor Luo Weiyuan, who emphasised that the suspects had carried out unlicensed financial operations in violation of Taiwan’s anti-money laundering legal guidelines.
The investigation additionally uncovered a separate fraud focusing on the BitShine operators themselves. Prosecutors stated a person surnamed Gu defrauded Shih and his associates of NT$3 million by falsely promising he may safe anti-money laundering registration approvals. Gu has additionally been indicted.
Featured picture create with DALL-E, Chart from TradingView
