Coin suspected of colluding with scam groups to defraud 1.2 billion yuan! Main suspect Shi Qiren posts 20 million in bail; prosecutors seek a 25-year sentence.

CryptoX Technology allegedly assisted a fraud syndicate in laundering money, with more than 1,000 victims, resulting in losses of NT$1.275 billion. The main suspect faces a request for a 25-year sentence, and the court ruled to grant bail of NT$20 million along with technology-based monitoring.

CryptoX Technology allegedly assisted a fraud syndicate in laundering money, with the number of victims exceeding 1,500

According to a report by Central News Agency, the Shilin District Prosecutor’s Office is investigating a case involving the virtual asset trading platform CryptoX Technology, which is suspected of assisting a fraud group in money laundering. Last year, it indicted 14 individuals, including the main suspect surnamed Shi, on charges including aggravated fraud, money laundering, and organized crime. Investigations by prosecutors and police found that between January 2024 and April 2025, the group allegedly assisted the fraud syndicate in fund transfers and money-laundering operations, with 1,539 victims and approximately NT$1.275 billion defrauded. Related money-laundering fund flows exceeded NT$2.3 billion as well.

The indictment states that CryptoX Technology claimed to have a legitimate virtual asset business operator identity and provided Tether (USDT) buying and selling services through franchise locations throughout Taiwan. The fraud syndicate, meanwhile, instructed victims to carry cash to stores to buy $USDT, and then transferred the assets into designated wallet addresses. By using multiple layers of transfers to cut off the connection between the flow of funds and the flow of tokens, it increased the difficulty for law enforcement agencies to trace.

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Prosecutors call for a 25-year sentence; the court finds the circumstances in this case are serious

Prosecutors believe that the main suspect surnamed Shi is suspected of orchestrating the overall operating model and establishing a complete cooperation mechanism with the fraud syndicate. By using virtual asset transactions to facilitate the circulation of criminal proceeds, prosecutors therefore brought charges under the Anti-Fraud Crime Prevention Act, the Anti-Money Laundering Act, and the Organized Crime Prevention Act, among others, and requested the court to impose a combined heavier punishment of 25 years’ imprisonment.

The court noted that this case involves a large number of victims and a substantial amount of money. If the final verdict is guilty, the defendant in the future may face significant criminal liability and civil compensation obligations. Therefore, the main suspect surnamed Shi indeed has a risk of evading trial and execution of punishment. In addition, the court also found that there is substantial suspicion that he committed crimes including fraud for the purpose of obtaining property involving more than three people and general money laundering.

The court granted high bail with technology-based monitoring measures

As the case entered the trial stage, the collegial panel believed that the necessity of detention had decreased compared with the period of investigation. The court therefore ruled that the main suspect surnamed Shi be released on bail of NT$20 million, while also implementing measures including restriction on residence, restriction on exit and departure for 8 months, and monitoring via technological equipment.

In addition to the bail conditions, the main suspect surnamed Shi must also report periodically to the relevant authorities as required. The court believed that, given the multiple measures including high bail, electronic monitoring, and restrictions on exit and departure, the risk of flight has been sufficiently reduced, and the subsequent trial proceedings can proceed smoothly.

Virtual asset fraud cases once again sound the alarm; joint defense of money flows and token flows is the focus

This case is viewed as one of the largest virtual asset money-laundering cases in Taiwan in recent years, once again highlighting the risk that cryptocurrencies can be used for fund transfers by illicit groups.

Prosecutors pointed out that the syndicate combined physical storefronts, $USDT trading, and cross-border transfer methods to establish a complete chain of fund-flow transfers, enabling criminal proceeds to move quickly overseas.

As the virtual asset industry gradually comes under regulatory oversight, competent authorities have in recent years continued to promote a joint-defense cooperation mechanism among banks, electronic payment institutions, and virtual asset service providers (VASP). In the future, how to improve the efficiency of reporting suspicious transactions, strengthen the ability to track money flows and token flows, and establish a more comprehensive virtual asset compliance regime will become an important issue for Taiwan in combating financial fraud.