Joint Efforts of Hualien City Citizens’ Representative Chairman and Digital Currency Exchange in Combating Multi-Million Taiwanese Dollar Money Laundering through “Money Laundering Entry Machine”
Hualien City Representative Council Chairman Li Zhenwei has been exposed for allegedly colluding with a cryptocurrency dealer to launder fraudulent proceeds, using deposit machines to evade bank monitoring. After intensive investigation, Li Zhenwei and several others have been detained and released on bail.
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Hualien well-known city council chairman caught up in cryptocurrency fraud storm, prosecutors and police launch comprehensive search
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Money laundering methods exposed: using deposit machines to convert cryptocurrencies
Involves an amount of up to 80 million New Taiwan dollars, multiple people suspected of involvement
Active crackdown by the Criminal Investigation Bureau and prosecution
Reminder to the public to be vigilant
Through its investigations, the Criminal Investigation Bureau found that Li Zhenwei had cooperated with a cryptocurrency dealer surnamed Zhang to convert large amounts of cash into cryptocurrencies using rented deposit machines (a type of ATM with only deposit functions). These machines can deposit up to 8 million New Taiwan dollars at one time, and the money can then be transferred to specific company accounts, thus evading the bank’s verification procedures for the source of funds.
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Deposit Machine
With the assistance of dummy company accounts and Zhang, Li Zhenwei is suspected of laundering an amount of up to 80 million New Taiwan dollars. Zhang not only provided the tools for money laundering but also charged a commission of 5% to 10% on the converted funds. In addition, several individuals have been detained for purchasing cryptocurrencies or acting as drivers.
Under the command of the Hualien District Prosecutor’s Office, the Criminal Investigation Bureau conducted a large-scale operation on March 19th this year, including searches and seizures, and Li Zhenwei, Zhang, and others were released on bail according to the law. This case also involves fraud and organized crime prevention, demonstrating the prosecution and police’s stern stance against financial crimes.
The Criminal Investigation Bureau emphasizes that with the changing methods of fraud, especially the rampant scams under the guise of cryptocurrency investments, the public is urged to carefully consider and be vigilant when faced with various investment opportunities promising high returns, in order to avoid suffering financial losses.
Deposit Machine
Money laundering
Hualien
Cryptocurrencies
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