Details on Taiwan Crypto Money Laundering Case of $75M Tied To CoinW

The biggest money laundering case in the history of Taiwan is being reported with some current updates that reveal how fraudsters used the loopholes in crypto regulations to target unsuspecting victims. The given article unfolds the layers of the Taiwan case tied to the CoinW exchange.

What’s the Case?

The key figure in the case is Shi Qiren, who was the alleged ringleader, his wife, business associates, and a network of 13 others. In a single year, more than NT$2.3 billion ($75 million) was laundered, and over 1,500 individuals were affected in Taiwan.

According to prosecutors, the group used the name of CoinW and the operations of BiXiang Technology to conduct a complex scheme of money laundering. The accused are currently charged with fraud, money laundering, operating unregistered virtual asset services, and organized crime activities.

All 14 people have been indicted by the Shilin District Prosecutor's Office, and the prosecution is seeking a 25-year prison sentence for Shi due to his lack of remorse and the financial and emotional damage done to thousands of victims.

Current Scenario of the Case

In April 2025, authorities conducted a large-scale search operation, raiding several locations and arresting key suspects. After several months of investigation, the group was indicted by prosecutors this week. They have also sought the forfeiture of NT$1.275 billion of illegal proceeds and assets associated with the fraud.

The trial is ongoing at the Shilin District Court, and its verdict may determine the future of the crypto exchange regulation in Taiwan.  Particularly those that are not properly registered regarding their anti-money laundering (AML) status.

Source: Wu Blockchain X

How the Fraud Was Carried Out?

Investigators said the group opened over 40 franchise-like crypto stores throughout Taiwan, with the promise that they were the only exchange licensed by the Financial Supervisory Commission (FSC). Victims were requested to make deposits of cash at special deposit machines installed in these stores.

The money obtained was then converted into cryptocurrencies such as USDT (Tether) and moved to overseas accounts through various accounts. This layering activity produced intricate breakpoints in the money trail, which made it more difficult to track the money.

The Assets Seized During the Investigation include:

• NT$60.49 million in cash

• 640,000 USDT tokens

• Cryptocurrencies such as Bitcoin (BTC) and TRX

• Two luxury cars

• Multiple bank deposits totaling more than NT$100 million

The authorities are now working to recover the remaining assets and ensure that the victims get justice.

The Twist in the Plot of the Story

Surprisingly, they also found out that Shi Qiren and his associates were victims of fraud. A man surnamed Gu deceived them by saying that he could assist BiXiang Technology to pass official AML registration. He would bill the group NT$3 million in processing fees, after which he disappeared with the cash.

Rising Crypto Crime in Taiwan

This $75 million Money laundering case reflects the alarming trend in Taiwan, where the crime involving cryptocurrencies is increasing. In 2024, 32 individuals were indicted by prosecutors in an NT$800 million crypto fraud case. Binance also helped crack a NT$200 million laundering scheme.

According to the data provided by the Financial Crime Academy (2025), Asia represents 50% of all crypto trades worldwide. It has also been found that exchanges with poor AML controls experience up to 30% more fraud.

Taiwan is Developing AML Regulation

Regulators have been busy with more stringent registration of exchanges, more scrutiny of suspicious transactions, and closer coordination with law enforcement agencies. Many countries put strict AML regulations, like New Zealand bans Bitcoin ATMs to fight Money Laundering

Conclusion

The CoinW exchange money laundering case is a turning point in Taiwan in combating crypto-related fraud. The end of this trial will not only be a matter of justice to the victims but also a precedent for how cryptocurrencies will be regulated in the future. Crypto frauds are getting common these days. Recently, four accused of laundering 900K crypto fraud .