A Taiwan court on July 20 sentenced the head of the Cointhink crypto fraud ring, identified as Shih, to 22 years in prison.
The Shilin District Court ruled after the group defrauded 1,539 investors of over $37.14 million USD, equivalent to NT$1.2 billion.
Fourteen individuals, including Shih, face indictments for breaching the Fraud Crime Prevention Act related to this criminal network.
The Shilin District Prosecutors Office uncovered that the scammers falsely claimed Cointhink Technology was authorized by Taiwan's Financial Supervisory Commission to attract victims.
The gang worked alongside organized crime groups, funneling victims through fake investment channels and instructing them to buy Tether (USDT) with cash.
Criminals laundered the illicit funds by converting cash into U.S. dollars and transferring them offshore to avoid detection.
In addition, victims were directed to move their existing USDT tokens to cold wallets controlled by the fraudsters, who used complex transfers to hinder law enforcement tracking.
Data shows that from January 2014 to April 2015, the syndicate processed a total money laundering volume exceeding $71.3 million USD.
Though prosecutors initially sought a 25-year sentence, the court settled on 22 years. Shih can still lodge an appeal against the verdict.
The Shih-chung District Prosecutors Office, which initiated charges last August, is pursuing confiscation of all assets gained from the scheme.
Taiwan recently passed the Virtual Asset Service Act, introducing its first strict crypto regulations with penalties up to 7 years for violations.
Disclaimer: This article is for informational purposes and does not constitute financial advice.
