Taiwanese authorities recently cracked a massive crypto scam, charging 14 people connected to the BitShine exchange. This group allegedly swindled over $41 million from more than 1,500 victims.
How the Scam Worked
BitShine pretended to be a legitimate exchange, even passing some compliance checks. But secretly, it was working with another company, Biying Technology (which wasn’t officially approved), to pull off the fraud. The scheme involved:
- Fake Investments: They lured investors with false promises.
- Unlicensed Crypto Operations: They operated outside the law.
- Money Laundering: Customer money was used to buy crypto (mostly USDT), then moved through complex transactions to hide its origins.
The operation was led by a man named Shih, with his wife and another suspect, Yang, playing key roles. They worked with organized crime, directing victims to send money to wallets controlled by the network. Between January 2024 and April 2025, they laundered an estimated $75 million, with $41 million directly linked to the 1,539 identified victims.
The BitShine Empire
To boost their scam, BitShine falsely claimed to be the only exchange authorized by Taiwan’s Financial Supervisory Commission (FSC). They opened over 40 stores under different names (CoinW and BiXiang Technology Co., Ltd.) and even used “deposit machines” to collect cash from victims. They charged over one million yuan in fees.
The Fallout
Authorities seized millions of dollars in cash, crypto (USDT), other digital assets, and luxury goods like cars.
The Shilin District Prosecutor’s Office charged Shih and 13 others with fraud, money laundering, and operating an unlicensed business. They’re seeking a 25-year sentence for Shih. Others who cooperated might get lighter sentences. Prosecutors also want to seize the $41 million in stolen funds.
The investigation also uncovered a separate scam where a man named Gu tricked Shih and his associates out of $90,000 by promising to help them get anti-money laundering approval. Gu has also been charged.