Taiwan's Largest Crypto Exchange Head Sentenced to 22 Years for Laundering Over NT$2.3 Billion

The head of "CoinW," Taiwan's largest offshore virtual asset exchange, has been sentenced to 22 years in prison for his role in a massive money laundering scheme. Shi Qiren, who has ties to the "Tiandao Alliance" triad, was found guilty of illegal virtual asset services, aggravated fraud, and money laundering. The exchange allegedly partnered with a fraud syndicate, using its franchise stores to sell USDT virtual currency, which served as a front for laundering funds. Prosecutors sought a 25-year sentence, but the court ultimately handed down 22 years, also ordering the confiscation of over NT$43.7 million in illicit gains.

The investigation revealed that Shi Qiren, with connections to organized crime, operated CoinW Taiwan without the required registration from the Financial Supervisory Commission. He invested millions of dollars to acquire the exchange, using it to recruit franchise stores that charged hefty fees. These stores then collected cash payments, converted them to USDT, and funneled them into CoinW wallets. The stores, while ostensibly offering virtual currency transactions, became conduits for fraud groups, instructing victims on how to purchase USDT and respond to verification checks.

Authorities seized a significant amount of cryptocurrency, including USDT and Bitcoin, along with millions in cash, luxury vehicles, and business documents during raids on 45 franchise locations and seven residences. The prosecution argued that Shi Qiren orchestrated the entire scheme and managed the flow of funds, leading to substantial losses for over 4,000 victims who reported their cases. The court cited Shi Qiren's disregard for regulations, his pursuit of high profits, and his introduction of fraud resources as significant factors in its sentencing, noting his lack of remorse and failure to offer compensation.

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The exchange's head, Shi Qiren, was sentenced to 22 years in prison for illegal virtual asset services, aggravated fraud, and money laundering.