Currency Exchange Facilitates Money Laundering for Fraudulent Gang, Member Previously Participated in Anti-Money Laundering Course at Gold Research Institute
The Tainan City Police and Prosecutors successfully uncovered a fraud case in November last year, which used the virtual currency “USDT” as a gimmick. The case involved 11 accomplices who were re-arrested by the Tainan District Court for providing money laundering services to the fraud group.
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Accomplices mainly from the 20s, one even attended anti-money laundering courses
Is it difficult to define money laundering for cryptocurrency exchanges? Only one person admitted guilt
Did the cryptocurrency exchange unknowingly shelter the fraud?
According to reports, most of these accomplices are from central and northern Taiwan, with ages mostly in their twenties. It is worth noting that one of them, a 28-year-old man, had attended the Anti-Money Laundering and Counter-Terrorist Financing course at the Financial Training Institute and became an expert in anti-money laundering. However, he chose to go against the principles he learned and used his knowledge to create a false image for the fraud group, attempting to evade legal sanctions.
During the investigation process, only one man surnamed Dai admitted guilt, while the others steadfastly denied their involvement. Faced with this situation, the prosecution urged the judge to give an appropriate judgment and take the matter seriously. It is reported that this fraud case has caused at least 20 victims, with losses ranging from tens of thousands to millions of dollars.
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Since March 2022, the fraud team has been promoting USDT on social media platforms such as LINE, Instagram, and Facebook, using the name “You Qiu Biying Willing to Purchase Society” for transactions, and registered with the Ministry of Economic Affairs to pose as a legitimate business to attract investors.
They deceived victims through fake friendships and investment invitations, and the accused cryptocurrency exchange provided USDT trading to establish trust. When the victims bought USDT from the cryptocurrency exchange and deposited it into the wallet address instructed by the fraud group, the funds would be transferred to the wallet of a fake investment platform, ultimately leading to the loss of the victims’ money.
With the active prosecution by the authorities, society hopes to have a greater deterrent effect on fraudulent activities and protect the legitimate rights and interests of investors.
Tainan
Cryptocurrency exchange
Anti-money laundering
Fraud
Further reading:
“Handsome Official in Need of Cryptocurrency Rescue” – Kaohsiung OTC cryptocurrency exchange “Jin Niu Bai Hui” involved in fraud and money laundering, 18 people arrested
Taiwan, the Island of Fraud? Fraud cases paralyze district prosecutors, prosecutor points out lack of effective supervision of individual cryptocurrency exchanges
