Taiwan sentences BitShine crypto exchange founder to 22 years in prison for $39M fraud

Jul 17, 2026

A Taipei court has sentenced Shih Chi-jen, the operator of the crypto exchange BitShine, to 22 years in prison for orchestrating a massive NT$1.27 billion ($39 million) fraud and money laundering scheme. This landmark ruling represents Taiwan's heaviest crypto-related sentence to date. The criminal network collaborated with organized crime syndicates to launder over NT$2.3 billion through Tether (USDT) transfers. The sentence coincides with Taiwan's enactment of the Virtual Asset Service Act, which replaces its previous registration system with a strict licensing regime.

BitShine fraud conviction

▪The Shilin District Court found Shih Chi-jen guilty of running an unlicensed virtual asset service and orchestrating a criminal network that disguised illicit activities behind a registered exchange.
▪The Shilin District Court in Taiwan convicted Shih Chi-jen, the operator of the crypto exchange BitShine, on 485 counts of aggravated fraud and money laundering.

Prison sentencing outcome

▪The Shilin District Court sentenced Shih Chi-jen to 22 years in prison, which is Taiwan's heaviest sentence to date for cryptocurrency-linked fraud.
▪The Shilin District Court ordered the forfeiture of NT$43.73 million in criminal proceeds from Shih Chi-jen.
▪Prosecutors had sought a 25-year prison sentence for Shih Chi-jen before the Shilin District Court imposed the 22-year term.

Money laundering scheme

▪The BitShine criminal network laundered more than NT$2.3 billion, equivalent to approximately $71 million, between January 2024 and April 2025.
▪The BitShine network converted victims' cash into Tether (USDT) and transferred the digital assets to overseas wallets to obscure the movement of funds.
▪The BitShine operation collaborated with organized crime groups, including the Heavenly Way Alliance, the Bamboo Union, and the Thento Union.

Taiwan Virtual Asset Service Act

▪Taiwan's Legislative Yuan passed the Virtual Asset Service Act on June 30, 2026, establishing a comprehensive licensing framework for virtual asset service providers.
▪Under the Virtual Asset Service Act, unlicensed virtual asset services or illegal stablecoin issuance can carry prison terms of up to seven years and fines up to NT$100 million.
▪The Virtual Asset Service Act requires crypto businesses to obtain approval from the Financial Supervisory Commission and introduces stricter standards for cybersecurity and customer asset segregation.

Global crypto regulatory trends

▪The European Union's Markets in Crypto-Assets (MiCA) framework has introduced harmonized licensing for cryptocurrency firms across Europe.
▪Regulators globally, including those in Europe, Singapore, Hong Kong, and Japan, are expanding licensing requirements and transaction monitoring to reduce financial crime in the digital asset sector.