A Taiwan court 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 caused more than NT$1.27 billion ($39 million) in losses to over 1,500 victims. According to reports from Taiwan's semi-official Central News Agency (CNA), 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. The court found that Shih led a criminal organization that used the crypto exchange, previously registered with Taiwan's Financial Supervisory Commission (FSC), to disguise illegal activities behind what appeared to be a legitimate business. The 485-count conviction included charges for aggravated fraud and money laundering, with prosecutors having initially sought a 25-year sentence.
Prosecutors said the group worked with fraud syndicates and members linked to the Thento Union, one of Taiwan's largest organized crime groups. As reported by CNA, investigators estimated the operation laundered more than NT$2.3 billion ($71 million) between January 2024 and April 2025. Victims' cash was allegedly converted into Tether's USDT before being transferred overseas. The scheme operated under two fronts: BitShine and BiXiang, both fronts for a company called Bixiang Technology. 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.
Beyond the 22-year prison sentence, Shih received an additional 16 months for operating virtual asset services without the required Anti-Money Laundering registration. The court ordered forfeiture of NT$43.73 million in crime proceeds. Prior seizures included NT$60.49 million in cash, 647,000 USDT, an unspecified amount of Bitcoin, TRX tokens, luxury vehicles, and more than NT$100 million sitting in bank deposits. The operation ran 45 physical storefronts scattered across Taiwan, where individuals were recruited to purchase crypto tokens using cash before the proceeds were funneled offshore using USDT and cold wallets.
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.
