Bixiang Tech Allegedly Colluded with Fraud Syndicate in $1.2 Billion Scam; Key Suspect Released on $20 Million Bail

(CNA reporter Hsieh Chun-lin, Taipei, June 14) The Shilin District Prosecutors Office has concluded its investigation into Bixiang Tech, a virtual currency exchange allegedly involved in colluding with fraud syndicates. In August last year, 14 individuals, including a member surnamed Shi from the Zhengyi faction of the Tian Dao Alliance, were indicted. Shi, who had been in custody, was recently granted bail of NT$20 million by the Shilin District Court, under conditions including travel restrictions and electronic monitoring.

According to the indictment, the group falsely claimed to be the 'only exchange authorized by the Financial Supervisory Commission' and collaborated with gang members to channel resources from fake investment fraud groups. Victims were lured into purchasing Tether (USDT) with cash, which was then converted into U.S. dollars and transferred overseas to conceal illicit funds. Victims were further induced to transfer their USDT into designated cold wallets, with funds routed through multiple layers to obscure the trail and conceal the origins of criminal proceeds.

Prosecutors and police estimate that between January 2024 and April 2025, the group laundered over NT$2.3 billion, with 1,539 victims losing a total of NT$12.75 billion. In August last year, the Shilin prosecutors indicted Shi and 13 others on charges including fraud under the Anti-Fraud Crime Prevention Act and money laundering, and requested confiscation of illegal gains. Prosecutors stated that Shi denied all charges and showed no remorse, recommending a combined sentence of 25 years in prison.

In its ruling on May 28 this year, the Shilin District Court acknowledged Shi's denial but found substantial evidence indicating his involvement in organized fraud and money laundering under the Criminal Code and Money Laundering Control Act. Given the large number of victims and the massive scale of losses, the court noted that if convicted, the criminal and civil liabilities would be severe, increasing the risk of flight or evasion.

The court also considered Shi's claim of having served as a business advisor for overseas firm CoinW, with its chairman reportedly funding his acquisition of Bixiang Tech. This suggests Shi holds significant overseas assets and the ability to live abroad. Moreover, as a professional in cryptocurrency trading, he could rapidly conduct overseas asset transactions, heightening flight risks.

However, the court noted that the trial concluded on April 30, and with sufficient bail, travel bans, electronic monitoring, and nightly police check-ins, these measures could serve as adequate alternatives to detention. Accordingly, Shi was released on NT$20 million bail, with restrictions on residence and travel for eight months, electronic surveillance for eight months, and a requirement to report to a police station nightly between 7 p.m. and 9 p.m.

The ruling stated that if Shi refuses these conditions, he will remain in custody for three months starting May 21. (Edited by Chen Jen-hua) 1150614