Illegal Use of Virtual Currency in Taichung Gambling Room Mr Liu Illegally Manipulates Gamblers Funds with Deposits Reaching 600 Million New Taiwan Dollars
A man surnamed Liu in Taichung City and his team used the legal cover of “Jingchao Advertising Company” to secretly operate an illegal gambling transfer room, specializing in the operation of virtual currency funds for gamblers. After a year of investigation and action, the police finally seized investment-type savings insurance policies worth 25.89 million Taiwanese dollars under the name of Mr. Liu and concluded the case, prosecuting 14 people including Mr. Liu.
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Operating Gambler Funds with Virtual Currency
Police Action Uncovers Illegal Gambling
First Wave of Action: Initial Detention
Second Wave of Action: Seizure of Virtual Assets
Third Wave of Action: Expanded Investigation
Clear Division of Labor within the Group
Exposure of Large Cash Flow: Deposits Exceeding 600 Million Taiwanese Dollars
The case was handled by Prosecutor Bai Huishu of the Taichung District Prosecutors Office, who found that the 50-year-old Mr. Liu, under the cover of the legal “Jingchao Advertising Company”, was actually operating an illegal gambling transfer room, and conducting fund operations for gamblers with virtual currency. The case was investigated by the Central Four Teams of the Criminal Investigation Bureau, the Fifth, Seventh, and Second Police Divisions of the Taichung City Police Department, and a joint task force.
The police launched the first search operation on September 26 last year, detaining 7 members of the group, and conducting technological analysis of the important evidence seized, in order to trace Mr. Liu’s true identity and work content.
On January 30 of this year, when Mr. Liu returned to Taiwan from abroad, the police launched the second wave of search operations, seizing his investment-type savings insurance policies worth 25.89 million yuan and obtaining a court-approved detention of Mr. Liu.
On April 23 of this year, the police launched the third wave of search operations, detaining 6 members of the group again, and expanding the investigation into the operation of the illegal gambling transfer room.
The investigation found that Mr. Liu and others had established customer service and control departments within the company. The customer service department was responsible for reviewing the membership qualifications of gamblers, responding to questions about sports event rules and odds raised by gamblers online; the control department was responsible for interfacing with the “inbound and outbound capital channels”, actually operating computers to recharge gambling funds and withdraw them with virtual currency for gamblers, concealing and disguising the proceeds of the crime, and engaging in money laundering activities.
Through technological analysis and analysis of virtual currency wallets, the police traced the total amount of funds from the group’s “XX Water Room” to be approximately 617.76 million Taiwanese dollars.
The Taichung District Prosecutors Office concluded the case, determining that Mr. Liu and 14 others were suspected of organizing crimes, gambling, money laundering, and other charges, and brought charges against them. The court ruled to detain Mr. Liu to prevent his escape or the destruction of evidence.
Taichung
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