Taiwan Police Uncover Record-Breaking Crypto Money Laundering Scheme

by Nik Asti

Published: November 01, 2023 at 1:59 am Updated: November 01, 2023 at 1:59 am

by Victor Dey

Edited and fact-checked:
November 01, 2023 at 1:59 am

In Brief

Taiwan police exposed a 320 million USDT laundering case, with suspects liaising with international fraud groups.

In a groundbreaking operation, Taiwan police have disclosed the largest cryptocurrency money laundering case in the nation, amounting to 320 million USDT (approx. 10.4 billion yuan).

The criminal mastermind behind this operation, a merchant surnamed Qiu, maintained connections with overseas gambling and fraud groups and would often traverse borders, communicating with illicit organizations in countries such as Hong Kong, Malaysia, and the Philippines.

From Mobile Software Fraud to Massive Money Laundering

The Electronic Investigation Team of the Criminal Bureau was first drawn to this case following a fraudulent operation involving a fake Taishin Securities mobile software last year. Their trail led them to Qiu, who had been laundering vast sums through virtual currency.

Investigations found that since February of the previous year, Qiu had managed transactions of a staggering 320 million Tether coins.

In June, law enforcement arrested Qiu during one of his visits to the country, along with four accomplices. Authorities confiscated high-value assets from Qiu, which included a Lamborghini URUS, a Lexus LM, and three AP watches, with a combined market value exceeding 13 million yuan.

Additionally, evidence from the operation revealed Qiu’s handling of illicitly procured Tether coins worth approximately 70 million yuan.

Taiwan police uncovered Taiwan’s largest cryptocurrency money laundering case, involving 320 million USDT. Criminal suspects often travel to Hong Kong, the Philippines, Malaysia and other places to communicate with local fraud groups and assist in money laundering.…

— Wu Blockchain (@WuBlockchain) November 1, 2023

Connections and Collaborators with Police

Further investigations disclosed that Qiu regularly sold virtual currency, converting it into cash. This method effectively disguised the origins of the money, achieving the purpose of laundering. He would also retain a profit margin of 1% from the laundered amount.

Several others were implicated in this vast operation. Among them were a foreign affairs officer named Liao, a Shuifangtou named Chen, and a Shuifang operator named Huang. All individuals are currently under investigation with varying levels of bail and restrictions imposed.

The intricate web of transactions and the substantial amount laundered by Qiu surpassed previous records held by the Electronic Investigation Team. As investigations continue, law enforcement is keen on unraveling the full extent of this operation and tracing the entirety of the money flow.

The lavish lifestyle maintained by Qiu, evidenced by luxury cars and high-end watches, serves as a glaring reminder of the extensive underground economy fueled by money laundering. Authorities remain committed to cracking down on such operations, ensuring the integrity of the financial system.

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Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master’s degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.

Nik Asti