Taiwan's Shilin District Court sentenced Shih, BitShine exchange ringleader, to 22 years for defrauding 1,500+ victims of $39 million. Shih led a criminal group that operated under the guise of BitShine, which was once registered with the Financial Supervisory Commission (FSC), to conceal illicit activities including fraud and money laundering. The ruling comes as Taiwan ramps up oversight of the crypto sector, with the legislature passing a law earlier this month establishing a regulatory framework for crypto trading platforms and stablecoin issuers.
Shilin District Court Sentences Shih to 22 Years for Fraud and Money Laundering
According to a Thursday report by the semi-official Central News Agency, the Shilin District Court sentenced the defendant surnamed Shih to 22 years in prison for illegally providing virtual asset services and orchestrating fraud and money laundering. Prosecutors said Shih led a criminal group that collaborated with fraud rings and gang affiliates tied to the Thento Union — one of Taiwan's three major organized crime groups — to funnel victims' cash into USDT purchases and then transferred the funds overseas.
Between January 2024 and April 2025, prosecutors estimated that the gang laundered more than NT$2.3 billion ($71 million), with 1,539 identified victims losing over NT$1.27 billion ($39 million), per the report. In August 2025, authorities indicted 14 suspects, including Shih, and sought a 25-year prison sentence for him.
BitShine Gang Used Compliance Officers to Design KYC Procedures
Local newspaper UDN reported that Shih hired unwitting compliance officers to design the exchange's know-your-customer procedures in an attempt to make the platform appear legitimate. However, Shih then used intermediaries to coach fraud ring members on how to answer KYC questions, ensuring victims could complete the verification process and purchase crypto. BitShine was once registered with the FSC, which prosecutors said Shih used to conceal illicit activities.
Taiwan Passes Crypto Law Establishing Regulatory Framework
Earlier this month, Taiwan's legislature passed a law establishing a regulatory framework for the crypto industry, including rules for crypto trading platforms and stablecoin issuers. Under the act, virtual asset service providers must obtain approval from the FSC before operating. The law also introduces stricter requirements on cybersecurity, client asset segregation, and internal controls.
FAQ
What did Taiwan's Shilin District Court sentence Shih to?
Taiwan's Shilin District Court sentenced Shih, the ringleader behind crypto exchange BitShine, to 22 years in prison for illegally providing virtual asset services and orchestrating fraud and money laundering. Prosecutors said Shih led a criminal group that defrauded over 1,500 victims of NT$1.27 billion ($39 million) between January 2024 and April 2025.
How did the BitShine gang launder money?
Prosecutors said the BitShine gang collaborated with fraud rings and gang affiliates tied to the Thento Union to funnel victims' cash into USDT purchases and then transferred the funds overseas. Between January 2024 and April 2025, the gang laundered more than NT$2.3 billion ($71 million), with 1,539 identified victims losing over NT$1.27 billion ($39 million).
What does Taiwan's new crypto law require?
Taiwan's legislature passed a law earlier this month establishing a regulatory framework for crypto trading platforms and stablecoin issuers. Under the act, virtual asset service providers must obtain approval from the Financial Supervisory Commission before operating. The law also introduces stricter requirements on cybersecurity, client asset segregation, and internal controls.
