Taiwan Indicts 14 in CoinW Crypto Laundering Scandal Worth $2.3 Billion

Highlights:

• CoinW crypto laundering scandal involved $2.3 billion and 1,539 victims.
• Fourteen suspects have been indicted, with the lead ringleader facing a 25-year prison sentence.
• Over 40 fake stores were used to launder funds disguised as investments.

Taiwanese authorities revealed a massive cryptocurrency scam involving NT$2.3 billion laundered through fake exchange franchises. The CoinW crypto laundering scandal involved a group led by Shi Qiren, whereby more than 40 stores bearing the CoinW name were opened to hide illegal transactions. The storefronts were running without any legal permission or registration from the financial supervisory commission of Taiwan, as per the report.

Shi and his partners lured investors by lying that they had the authorization of the government. Several victims assumed that they were investing in secure investments with no idea that the whole facility was actually a front to launder funds. A total of 1,539 people had lost NT$1.275 billion by April from this scheme.

The network employed the use of cooperative security firms to install deposit machines at every outlet. These machines received cash directly from the victims. Afterward, the funds were instantly exchanged into USDT and routed abroad. Furthermore, the suspects pooled each of the transactions through various wallets to obscure the transaction trail and conceal their illegal proceeds.

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

Authorities Launch Legal Crackdown and Seize Millions

Taiwanese prosecutors acted swiftly after the extent of the fraud became clear. They detained 14 suspects, including Shi and his wife, and directors and shareholders of the business. Seized assets included 640,000 USDT, Bitcoin, TRX, and NT$60.49 million in cash. Moreover, two luxury cars and over NT$100 million stored in bank deposits were seized. These are currently on an active confiscation request.

Chief Prosecutor Luo Weiyuan headed the investigation and found out that the network used fake licensing to misinform the public. Shi Qiren oversaw the general direction of the plan, and the rest dealt with recruiting and operations. In addition, each member had specific roles to play, which were described as a coordinated criminal organization by the prosecutors.

The CoinW crypto laundering scandal took a new turn when the investigators realized that Shi had also been conned. A man surnamed Gu fooled Shi into paying NT$3 million on the promise of securing regulatory approval for the group. Gu is now the subject of separate fraud charges, which makes the case even more complicated.

Prosecutors brought charges against all 14 individuals under multiple laws, including the Criminal Law, the Money Laundering Act, and the Organized Crime Prevention Act of Taiwan. Moreover, they sought that Shi be sentenced to 25 years of imprisonment because of failure to cooperate and lack of remorse. According to the court documents, the behavior of Shi had severe financial and psychological consequences on the victims.

Taiwan’s Crypto Policy Moves Amid Legal Action

Although this case exposes the black side of crypto in Taiwan, it comes at a time of remarkable regulatory developments. In May, one legislator proposed that Bitcoin be included in the national reserves of Taiwan. He argued that the limited supply of Bitcoin would aid in mitigating the exposure to global economics and geopolitical risk.

Taiwan Legislator KO, JU-CHUN advocates for Bitcoin as part of a diversified reserve strategy at the National Conference on May 9th. Citing global risks & Bitcoin’s hedge potential, he urges Taiwan to consider it alongside gold & forex reserves to bolster financial resilience.… pic.twitter.com/KHKcHLQ2uB

— 科技立委葛如鈞 Ko Ju-Chun (@dAAAb) May 9, 2025

Meanwhile, the Financial Supervisory Commission of Taiwan gave the green light to access to foreign crypto ETFs to professional investors in September 2024. Eligible clients are now able to invest in instruments such as Bitcoin ETFs through licensed brokers. Prior to doing so, every investor must undergo a suitability check and sign a risk disclosure form.