Taiwan sentences BitShine crypto exchange ringleader to 22 years in $39 million fraud case: reports

Taiwan has sentenced the ringleader behind crypto exchange BitShine to 22 years in prison for defrauding over 1,500 victims of NT$1.27 billion ($39 million), local media reported. 

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.

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, per the report. 

Prosecutors said the group 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. 

Local newspaper UDN reported that Shih even 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.

In August 2025, authorities indicted 14 suspects, including Shih, and sought a 25-year prison sentence for him.

Crypto regulation

The ruling comes as Taiwan ramps up oversight of the crypto sector. 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.