Taiwan jails BitShine leader 22 years for $39M fraud

A court in Taipei on Thursday handed a 22-year prison term to the operator of crypto exchange BitShine, identified by the surname Shih, after finding him guilty of fraud, money laundering and providing unauthorized virtual asset services. Authorities calculated that 1,539 people lost a total of NT$1.27 billion (about $39 million).

Prosecutors allege Shih led a criminal group that ran BitShine, which had at one time been registered with the Financial Supervisory Commission, to hide illicit activity and move customer funds overseas. Investigators say the group converted customer cash into the stablecoin USDT and transferred proceeds abroad. Between January 2024 and April 2025, investigators estimate the group laundered more than NT$2.3 billion (roughly $71 million).

Court filings describe coordination with several fraud rings and with affiliates linked to the Thento Union, an organized crime group in Taiwan. The network is alleged to have guided victims into making crypto purchases and used intermediaries to coach fraud ring members on how to answer know-your-customer questions so transactions could proceed.

Prosecutors say Shih recruited compliance staff who were not told they were participating in fraudulent procedures. Those verification processes were then used to let illicit actors and deceived customers complete identity checks and buy USDT.

An August 2025 indictment named 14 suspects. Prosecutors had sought a 25-year sentence for Shih; the Shilin District Court imposed 22 years on counts including unauthorized virtual asset services, orchestrating fraud and laundering criminal proceeds.

The ruling comes as Taiwan has enacted a new law creating a formal regulatory framework for virtual asset service providers. The legislation requires firms to obtain approval from the Financial Supervisory Commission before operating and sets stricter standards for cybersecurity, segregation of client assets and internal controls. The rules also address trading platforms and stablecoin issuers.