The Taichung Gaming Room Case Mr Liu Illegally Utilizes Virtual Currency to Manipulate Gambler Funds Involving Deposits of Up to 600 Million New Taiwan Dollars
The 50-year-old Liu and his team in Taichung City used the legal cloak of “Jingchao Advertising Company” to secretly operate an illegal gambling transfer station, specializing in fund operations for gamblers using virtual currency. After a year of investigation, the police finally seized investment-type insurance policies worth 25.89 million New Taiwan Dollars under the name of Liu, and concluded the case by prosecuting Liu and 14 others.
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Operating Gambler Funds with Virtual Currency
Police Action Exposes Illegal Gambling
First Wave of Action: Initial Detention
Second Wave of Action: Seizure of Virtual Assets
Third Wave of Action: Expansion of Investigation
Clear Division of Labor within the Group
Exposure of Large-Scale Cash Flow: Deposits Exceeding 600 Million New Taiwan Dollars
Taichung District Prosecutor Bai Huishu handled this case and found that Liu, 50, used the legal “Jingchao Advertising Company” as a cover, but actually operated an illegal gambling transfer station, conducting fund operations for gamblers using virtual currency. The case was investigated by the Criminal Investigation Bureau’s Fourth Team, Taichung City Criminal Investigation Division’s Fifth, Seventh and Second Police Station Joint Special Team.
On September 26 last year, the police carried out the first search operation and detained 7 group members, and conducted technological analysis of the important evidence seized to trace Liu’s true identity and job content.
On January 30th, when Liu returned to Taiwan from abroad, the police launched the second wave of search operations, seizing 25.89 million New Taiwan Dollars worth of investment-type insurance policies under his name, and obtained court approval to detain Liu.
On April 23rd, the police carried out the third wave of search operations, detaining 6 group members again and expanding the investigation into the operation of the illegal gambling transfer station.
The investigation found that Liu and others had set up a customer service department and a control department within the company. The customer service department was responsible for reviewing the qualifications of gambler members, and responding to questions about the rules and odds of sports events that gamblers raised online; the control department was responsible for interfacing with “inflow and outflow channels” and actually operating computers to recharge gambling funds and withdraw funds for gamblers using virtual currency, concealing and disguising the proceeds of crime, and engaging in money laundering activities.
Through technological analysis and analysis of virtual currency wallets, the police traced that Liu and his group had deposited a total of about 617.76 million New Taiwan Dollars from “OO Water Room”.
The Taichung District Prosecutor’s Office concluded this case, determining that Liu and 14 others are suspected of organized crime, gambling, money laundering, and other crimes, and filed a public prosecution against them. The court ruled to detain Liu to prevent him from escaping or destroying evidence.
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