Bixiang Tech Involved in Collusion with Fraud Group, Cheating Thousands of People out of NT$1.27 Billion; Shihlin Prosecutors Indict 14 Suspects

The Shihlin District Prosecutors Office investigated the case of the virtual currency asset exchange "Bixiang Tech" allegedly colluding with a fraud group. It was found that 1,539 people were defrauded, with losses amounting to over NT$1.275 billion. The investigation concluded today, and 14 individuals, including a member of the Tian Dao Meng Justice Association surnamed Shih, were indicted according to the law.

A press release pointed out that "Biying Tech," where Shih served as the Taiwan area responsible person, did not pass the Financial Supervisory Commission's anti-money laundering and compliance regulations. Between 2023 and 2024, Shih acquired "Bixiang Tech," which had already met the FSC's standards, using the legitimate company to cover the operations of the illegitimate one.

The prosecutors noted that the group's structure included Shih as the Taiwan area responsible person, his wife Lin as the Asia-Pacific director, and Yang as the Asia-Pacific business director. They also recruited business development staff, social media editors, product managers, and others, all actually employed by unidentified Chinese individuals behind the scenes.

Shih and Yang externally recruited shareholders to open stores, selling Tether without approval and providing fiat-to-cryptocurrency exchange services. Over 40 stores were opened across Taiwan. Shareholders were required to pay millions in NT dollars in franchise fees and additionally deposit operational security funds ranging from NT$500,000 to NT$1 million, managed by a man surnamed Wang as a deposit for Tether inventory.

According to the investigation, the group claimed to be "the only one authorized by the FSC nationwide" and collaborated with gang members to introduce fake investment fraud group resources. They guided victims to use cash to purchase Tether, then converted the funds into U.S. dollars and transferred them overseas to hide the money flow. They then induced victims to transfer Tether to designated cold wallets, creating breakpoints through layered transfers to conceal the proceeds of crime.

Today, the prosecutors indicted 14 individuals, including Shih, Yang, Wang, and Lin, under the Fraud Hazard Prevention Act, Organized Crime Prevention Act, Money Laundering Control Act, and Criminal Code fraud offenses, and applied for confiscation of criminal proceeds. A man surnamed Gu was separately indicted for fraud.

The prosecutors stated that Shih denied the charges and showed poor attitude after the crime, recommending a combined sentence of 25 years. Yang and Wang both pleaded guilty and proposed plans to return criminal proceeds, suggesting appropriate sentences. Lin and other staff admitted to the crimes, and considering they are salaried employees, recommended leniency and probation. Gu denied the charges, and his actions damaged the image of public servants, recommending a five-month prison sentence as a warning.