Taiwan has sentenced the alleged mastermind behind the BitShine crypto exchange to 22 years in prison after finding he led a fraud and money laundering operation that prosecutors said caused more than NT$1.27 billion ($39 million) in losses to over 1,500 victims.
Summary
- A Taiwan court has sentenced the BitShine crypto exchange ringleader to 22 years in prison over a NT$1.27 billion fraud and money laundering scheme.
- Prosecutors said more than 1,500 victims were defrauded after funds were converted into USDT and moved overseas through the exchange.
- The ruling comes after Taiwan approved a new licensing framework that strengthens oversight of crypto exchanges and stablecoin issuers.
Taiwan’s semi-official Central News Agency (CNA) reported that the Shilin District Court convicted the defendant, identified by the surname Shih, of illegally operating virtual asset services while orchestrating fraud and money laundering through the BitShine platform.
Court findings said Shih led a criminal organization that used BitShine, a crypto exchange previously registered with Taiwan’s Financial Supervisory Commission (FSC), to disguise illegal activities behind what appeared to be a legitimate business.
Prosecutors said the group worked with fraud syndicates and members linked to the Thento Union, one of Taiwan’s largest organized crime groups. Victims’ cash was allegedly converted into Tether’s USDT before being transferred overseas.
Investigators estimated the operation laundered more than NT$2.3 billion ($71 million) between January 2024 and April 2025. Prosecutors identified 1,539 victims who together lost more than NT$1.27 billion ($39 million), according to CNA.
Local newspaper UDN reported that Shih recruited compliance personnel who were unaware of the alleged scheme to develop know-your-customer (KYC) procedures for the exchange. Prosecutors said intermediaries later coached fraud ring members on how to answer KYC verification questions so victims could successfully complete onboarding and purchase cryptocurrency through the platform.
Authorities indicted 14 suspects, including Shih, in August 2025. Prosecutors had sought a 25-year prison sentence for the alleged ringleader before the court handed down a 22-year term.
Taiwan tightens crypto oversight
The ruling comes weeks after Taiwan approved a new legal framework for virtual asset businesses.
On June 30, Taiwan’s Legislative Yuan passed the Virtual Asset Service Act, replacing the country’s previous anti-money laundering registration system with a licensing regime covering crypto exchanges, trading platforms, custodians, transfer firms, lending providers and other virtual asset service providers.
Under the new law, crypto businesses must obtain approval from the FSC before operating. Existing firms that completed anti-money laundering registration before the law takes effect will have 12 months to apply for regulatory approval and up to 21 months to secure a license, with a one-time three-month extension available in limited cases.
The legislation also introduces rules covering cybersecurity, customer asset segregation, internal controls, financial reporting, and asset listing reviews. Stablecoin issuers must receive approval from both Taiwan’s central bank and the FSC while maintaining fully backed reserves held in trust, alongside regular audits and public disclosures.
The law also establishes criminal penalties for unlicensed crypto operations and market abuse. Illegal virtual asset services or stablecoin issuance can result in prison terms of up to seven years and fines reaching NT$100 million, while fraud and market manipulation offenses carry penalties of three to 10 years in prison and fines of up to NT$200 million.
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