Taiwan court gives BitShine founder 22 years over alleged $39 million crypto fraud

Case and sentence

The defendant, identified only by the surname Shih, was found guilty of illegally operating virtual asset services while using the BitShine platform to carry out fraud and launder funds, according to prosecutors and court findings cited in the report. Authorities said the case affected 1,539 victims and caused losses of more than NT$1.27 billion, or about $39 million.

The court said Shih led a criminal organization that presented BitShine as a legitimate business while concealing illegal activity behind the exchange’s operations. Prosecutors described him as the alleged mastermind of the scheme.

How the operation allegedly worked

Investigators said victims’ cash was converted into USDT and then transferred overseas. They estimated that more than NT$2.3 billion, about $71 million, was laundered through the operation between January 2024 and April 2025.

Prosecutors alleged that the group coordinated with fraud syndicates and with members linked to the Thento Union, which the report described as one of Taiwan’s largest organized crime groups. Court findings said BitShine was used as the platform through which these activities were carried out.

Authorities also said the operation attempted to preserve an appearance of compliance. According to prosecutors, Shih brought in compliance staff who were not aware of the alleged criminal scheme to help build know-your-customer procedures for the exchange.

KYC controls and alleged evasion

At the same time, prosecutors said intermediaries coached members of fraud rings on how to respond to KYC verification questions. That process, they alleged, helped onboard victims and made it easier to process cryptocurrency purchases through the platform despite the controls that had been put in place.

The report did not provide further details on the victims or on whether additional defendants were sentenced in the same case. It also did not say whether Shih plans to appeal.

Regulatory backdrop

The ruling comes as Taiwan tightens oversight of the digital-asset sector. According to the report, the country has approved a new licensing framework for crypto exchanges and stablecoin issuers. The measures introduce penalties for operating without a license as well as for other violations.

The BitShine case adds to the scrutiny facing virtual asset businesses in Taiwan, particularly where exchanges are alleged to have been used to move funds tied to fraud. The court’s decision, as described in the report, links a major prison sentence to claims that an apparently compliant crypto platform was used to channel illicit proceeds while masking the activity behind formal onboarding procedures.