Lead Suspect in BitShine USDT Fraud and Money-Laundering Case Granted Bail

BiXiang Technology, once Taiwan's largest physical cryptocurrency dealer, exploited the decentralized and rapid nature of virtual-asset transactions to launder funds in collusion with fraud rings. The case involved NT$2.3 billion in laundered funds, severely damaging Taiwan's financial order and confidence in its virtual-asset market. It also prompted widespread concern over regulatory gaps affecting brick-and-mortar cryptocurrency dealers.

The Shilin District Court in Taiwan handed down its first-instance ruling in the case on July 17, 2026. Mastermind Shih Chi-jen was sentenced to 22 years in prison for offenses including violations of the Organized Crime Prevention Act. The court also ordered the confiscation of more than NT$43.71 million in criminal proceeds, along with seized cryptocurrency and cash, making it one of Taiwan's heaviest sentences in a cryptocurrency money-laundering case in recent years.

Tether’s USDT is pegged to the U.S. dollar and is often used for cross-border transfers. Private crypto dealers that fail to verify customer identities and sources of funds or retain transaction records can create gaps in the anti-money-laundering trail. The case also highlights a gap in the law: because cryptocurrency is not legal tender, prosecutors face difficulties pursuing such activity as a serious underground remittance offense under the Banking Act and instead brought charges under the Money Laundering Control Act.

A report on April 19, 2026, said the Taichung District Prosecutors Office found that a Vietnamese migrant worker surnamed Su had received and sold 16,914,705.5 USDT through OKX’s offshore over-the-counter market since January 2025. The tokens were worth NT$507.44 million. Su then transferred Vietnamese dong into customers’ digital wallets, earning NT$202,976 from the price spread. Prosecutors indicted Su on a charge of aggravated money laundering and sought a three-year prison sentence.

Siblings Chang Han-lin and Chang Yu-ting were involved in operating cryptocurrency exchange BITGIN, which began operating as a local virtual-asset platform in 2021 and had submitted an anti-money-laundering compliance declaration to Taiwan's Financial Supervisory Commission. Prosecutors allege that fraud rings used the platform in 2023 to move illicit proceeds through USDT and overseas exchanges, highlighting the regulatory risk that legitimate platforms can be exploited as money-laundering channels.

The Taipei District Prosecutors Office indicted 10 people on March 13, 2026, on charges including aggravated fraud, money laundering and organized crime. Prosecutors allege that more than NT$150 million was laundered over three months, affecting 46 victims. They are seeking 12-year prison terms for Chief Operating Officer Chang Yu-ting and Chief Executive Officer Chang Han-lin. Lawyer Cheng Hung-wei was also indicted, and prosecutors are tracing the flow of NT$180,000 linked to the case.