Ginger Duck Family Transitions to Cryptocurrency Money Laundering: Physical Storefront as a One-Stop Fraud and Money Laundering Operation, Yunlin Prosecutor’s Office Indicts 17 Individuals with Financial Flow Reaching 3.1 Billion.
Cross-border Fraud and Money Laundering Case Involving Cryptocurrency Stores and Logistics Companies Finally Solved
After a year and a half of in-depth investigation by the Yunlin District Prosecutor’s Office, a cross-border fraud and money laundering case combining cryptocurrency stores and logistics companies has finally been cracked. On March 21, 2025, the prosecutors officially filed charges against 17 defendants, revealing how the fraud group conducted money laundering activities amounting to over NT$3.1 billion through physical currency stores and fake logistics networks, making it one of the most astonishing physical fraud schemes in the cryptocurrency sphere.
OTC Cryptocurrency Dealers and Logistics Collude to Form “Black Capital Enterprises”
Initially operating a ginger duck restaurant, the Zhou father-son duo recently shifted to cryptocurrency over-the-counter trading, secretly colluding with a fraud group to establish a seemingly legitimate USDT physical exchange store in Taichung. These stores were transformed into what appeared to be professional shell companies with KYC processes and anti-fraud slogans, but in reality, they served as the hub for the fraud group’s money laundering activities.
Once the stores were established, they coordinated with offshore scam operations, luring victims to exchange cash for USDT, which was then quickly transferred to a fake investment platform. The physical store employees were misled or passively involved, becoming “scam runners,” while the logistics company personnel were packaged as cash couriers, transporting hundreds of thousands of dollars in cash daily to various accounts or locations.
From Mother-Daughter Duos to Couples, the Entire Family Mobilized in the Criminal Chain
The core members of the fraud group included the 32-year-old main suspect Liu, the 26-year-old Zhou cryptocurrency dealer, and a 56-year-old man named You responsible for virtual logistics and capital flow. The Zhou family resembled a “black capital enterprise,” with parents, siblings, and girlfriends all participating in the “money laundering business.”
Funds were manipulated through a “controlled handover” method: the entire process of victims handing over their payments was under the control of the fraud group. Members utilized various company names (such as Heng○ Company, Yu○ Tang Company, etc.) to handle the illicit funds, transferring them to offshore accounts in companies in Hong Kong and Thailand, and conducting currency exchange. Some funds were converted into real estate or luxury cars, while others were laundered through fake game point transactions.
After the Franchise Chain Broke, They Started Anew, Establishing “Tether Exchange Houses” Across Taiwan
The fraud group initially franchised from a legitimate USDT store named “U○○○E,” but when the headquarters detected suspicious activities, they strengthened the real-name verification system, preventing the group from operating through that channel. The main suspects then started afresh, creating the brands “T○○○er” and “F○○ding U,” incorporating regional names to continue their money laundering business, expanding from Taichung to Kaohsiung and various locations in the north.
These new stores ostensibly sold cryptocurrencies but were, in fact, the “second strongholds” for the fraud group’s money laundering, even establishing victim control forms and employee response scripts, transforming the “virtual currency stores” into transit points for fraudulent cash flows.
In Just a Few Months, NT$3.1 Billion Was Collected, Victims Included Students, Patients, and Home Loan Borrowers
According to the prosecutors’ statistics, from January to July 2024 alone, the number of reported victims reached hundreds, with total losses amounting to NT$3.12859 billion. Most victims lacked sufficient knowledge of cryptocurrencies and were lured by persuasive language into engaging in over-the-counter trading, where their exchanged USDT was swiftly transferred away, making it difficult to recover their losses.
This included university students, individuals suffering from illnesses in urgent need of medical expenses, and even those who mortgaged their properties to invest, ultimately losing all their capital. The prosecutors described the harm caused by this case to the public as comparable to drug-related crimes.
Prosecutors Demand Heavy Sentences: Main Suspects Should Be Sentenced to Over 20 Years
For the main suspects Zhou○Wei, Liu○Gu, and You○Fu, the prosecutors requested the court impose heavy sentences of over 20 years, pointing out that although the base penalty for aggravated fraud is not as severe as that for drug trafficking, this case involves cross-border fraud, organized money laundering, and physical storefronts concealing criminal activities, all of which undermine the foundation of social trust.
Due to the fraud group’s operations intertwining virtual currencies with physical structures, it increased the difficulty of solving the case and recovering losses. The prosecutors urged the public to stay vigilant, refrain from trusting unknown cryptocurrency transactions, and avoid handing over cash for over-the-counter operations.
Risk Warning
Investing in cryptocurrencies carries a high degree of risk, with prices potentially experiencing significant fluctuations, leading to a total loss of principal. Please assess the risks carefully.
