Premier Zhuo Promises Prioritization of Simple Cases for Tether (USDT) Scam Victim Restitution
Premier Zhuo Rong-tai, chairing the Executive Yuan's second security meeting of 2025, emphasized strengthening anti-fraud systems by focusing on enhanced penalties, accelerated interception, and improved protection, especially concerning virtual assets and third-party payment challenges. He highlighted the growing trend of virtual asset-related fraud and the increasing scale of financial losses. While over NT$10.2 billion has been frozen in Tether (USDT) scams, complex cases hinder restitution. Zhuo urged the Ministry of Justice and other agencies to negotiate with Tether to prioritize the return of funds in simpler cases based on the principle of 'easier first.' The Executive Yuan has also passed the draft 'Virtual Asset Service Act' to establish a clear regulatory framework and enhance market trust.
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- 📰 Published: April 8, 2026 at 21:15
- 🔍 Collected: April 8, 2026 at 22:00 (45 min after Published)
- 🤖 AI Analyzed: April 8, 2026 at 22:57 (57 min after Collected)
The Executive Yuan announced that Premier Zhuo Rong-tai, during the 'Executive Yuan's 2nd Security Meeting of 2025,' stated that Taiwan's overall security performance has been highly recognized internationally and domestically, indicating the effectiveness of the government's ongoing security policies.
He pointed out that in response to the evolving nature of fraud and challenges posed by new financial tools like virtual assets and third-party payments, the government will strengthen its anti-fraud system from three major aspects: 'enhanced penalties, accelerated interception, and improved protection.' This will involve refining legal and regulatory measures, cross-ministerial cooperation, and technological investigation to comprehensively enhance crime prevention effectiveness, while also strengthening drug interdiction and financial security management.
Zhuo mentioned that given the severe abuse of the new drug 'Xylazine' in the United States and reported cases of mixed use in Taiwan, the Executive Yuan upgraded it to a Category 2 narcotic on February 24th. He urged the Ministry of Justice to stay informed about the latest drug trends and called on law enforcement agencies to intensify drug interdiction and crack down on drunk driving.
Following a report from the National Police Agency on 'Analysis of Stolen Funds Flowing into Virtual Assets and Countermeasures,' Zhuo noted that current virtual asset crimes are primarily focused on fraud cases, with a growing trend in the scale of financial losses. He requested all ministries to strengthen efforts in combating these crimes and advancing related work. This includes the Financial Supervisory Commission accelerating the completion of subsidiary regulations authorized by the 'Fraud Crime Harm Prevention Act' to facilitate timely identification of fraudulent wallet addresses and the retrieval of information from virtual asset service providers, thereby reducing public financial losses.
Furthermore, Zhuo stated that 'Tether (USDT)' is the primary currency involved in current financial losses in Taiwan. Although over NT$10.2 billion has been successfully frozen (1 USDT is approximately equal to 1 USD), complex case details prevent the initiation of restitution procedures. He urged the Ministry of Justice, the Supreme Prosecutors Office, and the National Police Agency to actively negotiate with Tether, adhering to the principle of 'easier first,' to prioritize the restitution process for simpler cases.
Zhuo emphasized that to foster the sound operation and development of virtual asset businesses, protect the rights and interests of traders, and enhance market trust, the Executive Yuan passed the draft 'Virtual Asset Service Act' on April 2nd and sent it to the Legislative Yuan for review. The objective is to establish a comprehensive and clear regulatory system and framework to ensure the security of customer assets. Additionally, to prevent illicit actors from laundering money through virtual assets, he requested the Investigation Bureau and the National Police Agency to continuously enhance their technological investigation capabilities to systematically dismantle fraud syndicates.
Regarding the Digital Development Administration's report on 'Public-Private Partnership Management for Third-Party Payment Service Providers in 2025,' Zhuo stated that to build a secure third-party payment environment, the Ministry of Digital Affairs should actively conduct operator registration and on-site inspections. Through cross-ministerial joint defense mechanisms and public-private partnerships, fraud and money laundering will be combated. He also urged the Ministry of Digital Affairs, the FSC, and relevant agencies to continue strengthening financial flow supervision, information sharing, and real-time blocking mechanisms to prevent fraud cases. (Editor: Lin Hsing-meng) 1150408
He pointed out that in response to the evolving nature of fraud and challenges posed by new financial tools like virtual assets and third-party payments, the government will strengthen its anti-fraud system from three major aspects: 'enhanced penalties, accelerated interception, and improved protection.' This will involve refining legal and regulatory measures, cross-ministerial cooperation, and technological investigation to comprehensively enhance crime prevention effectiveness, while also strengthening drug interdiction and financial security management.
Zhuo mentioned that given the severe abuse of the new drug 'Xylazine' in the United States and reported cases of mixed use in Taiwan, the Executive Yuan upgraded it to a Category 2 narcotic on February 24th. He urged the Ministry of Justice to stay informed about the latest drug trends and called on law enforcement agencies to intensify drug interdiction and crack down on drunk driving.
Following a report from the National Police Agency on 'Analysis of Stolen Funds Flowing into Virtual Assets and Countermeasures,' Zhuo noted that current virtual asset crimes are primarily focused on fraud cases, with a growing trend in the scale of financial losses. He requested all ministries to strengthen efforts in combating these crimes and advancing related work. This includes the Financial Supervisory Commission accelerating the completion of subsidiary regulations authorized by the 'Fraud Crime Harm Prevention Act' to facilitate timely identification of fraudulent wallet addresses and the retrieval of information from virtual asset service providers, thereby reducing public financial losses.
Furthermore, Zhuo stated that 'Tether (USDT)' is the primary currency involved in current financial losses in Taiwan. Although over NT$10.2 billion has been successfully frozen (1 USDT is approximately equal to 1 USD), complex case details prevent the initiation of restitution procedures. He urged the Ministry of Justice, the Supreme Prosecutors Office, and the National Police Agency to actively negotiate with Tether, adhering to the principle of 'easier first,' to prioritize the restitution process for simpler cases.
Zhuo emphasized that to foster the sound operation and development of virtual asset businesses, protect the rights and interests of traders, and enhance market trust, the Executive Yuan passed the draft 'Virtual Asset Service Act' on April 2nd and sent it to the Legislative Yuan for review. The objective is to establish a comprehensive and clear regulatory system and framework to ensure the security of customer assets. Additionally, to prevent illicit actors from laundering money through virtual assets, he requested the Investigation Bureau and the National Police Agency to continuously enhance their technological investigation capabilities to systematically dismantle fraud syndicates.
Regarding the Digital Development Administration's report on 'Public-Private Partnership Management for Third-Party Payment Service Providers in 2025,' Zhuo stated that to build a secure third-party payment environment, the Ministry of Digital Affairs should actively conduct operator registration and on-site inspections. Through cross-ministerial joint defense mechanisms and public-private partnerships, fraud and money laundering will be combated. He also urged the Ministry of Digital Affairs, the FSC, and relevant agencies to continue strengthening financial flow supervision, information sharing, and real-time blocking mechanisms to prevent fraud cases. (Editor: Lin Hsing-meng) 1150408
FAQ
What is the government's approach to combating fraud?
The government is strengthening its anti-fraud system through enhanced penalties, accelerated interception, and improved protection, focusing on virtual assets and third-party payments.
What is the status of Tether (USDT) related fraud cases in Taiwan?
Tether (USDT) is the primary currency involved in current financial losses due to fraud. Over NT$10.2 billion has been frozen, but complex cases are delaying restitution.
What steps are being taken to facilitate restitution for victims of USDT scams?
The Ministry of Justice and other agencies are urged to negotiate with Tether to prioritize the return of funds in simpler cases under the 'easier first' principle.
What is the purpose of the 'Virtual Asset Service Act'?
The act aims to establish a clear regulatory framework for virtual asset services, protect customer assets, and enhance market trust.
How is the government addressing risks associated with third-party payment services?
The Ministry of Digital Affairs is conducting operator registration and inspections, and cross-ministerial cooperation is being enhanced to combat fraud and money laundering.