"Handsome official needs cryptocurrency rescue" - Kaohsiung OTC exchange "Jin Niu Bai Hui" involved in fraud and money laundering, 18 individuals arrested

In a fraud case orchestrated by an overseas scam operation that used cryptocurrency as a medium of exchange, the police successfully cracked down on the well-known OTC coin dealer in Kaohsiung, "Jinniu Exchange," and arrested 18 suspects, including the founder and his son.

Another Romance Scam! Mysterious Handsome Men and Beautiful Women Officials in Need of Cryptocurrency

In this case, a fraud group meticulously planned a romance scam by initiating conversations on social media platforms posing as handsome men and beautiful women. They launched emotional offensives on their targets, claiming to be foreign military officers or United Nations officials, using affectionate words to manipulate the victims' emotions, ultimately deceiving them into purchasing cryptocurrency for "rescue purposes".

Criminal Involvement of OTC Cryptocurrency Exchange

"Jinniu Exchange" operates 5 physical stores in Taiwan, appearing as a normal cryptocurrency trading business on the surface. However, while assisting victims in purchasing cryptocurrency, the staff covertly transferred funds to the fraud group's wallet, engaging in money laundering activities. This investigation revealed at least 40 victims involved, with amounts reaching up to 50 million New Taiwan Dollars, including over 26 million in cash, a Porsche, and 23,912 USDT.

Task Force Seizes a Large Amount of Evidence

On January 24, the task force conducted simultaneous searches on the stores under "Jinniu Exchange", arresting the mother-son duo surnamed Wang and other employees suspected of fraud, money laundering, and organized crime. During the search, a large amount of cash, luxury vehicles, and cryptocurrency were seized, further confirming their illegal activities.

Exchange Operators Detained, Continued Hunt for Accomplices

Among the arrested suspects, the Wang mother-son duo were detained by the prosecutor, while some key figures were released on bail, and the remaining employees were released without bail. The police continue to track potential accomplices and undisclosed victims to ensure all individuals involved in the case face legal consequences.

OTC Exchange "Jinniu Exchange" Fails to Complete Anti-Money Laundering Declaration, FSC Considers Them Illegal Operators

"Jinniu Exchange" has not completed the anti-money laundering declaration as stipulated by the Financial Supervisory Commission (FSC) but continues to operate, even hosting blockchain promotion events under the name of the "Chinese Innovative Blockchain Application Association", suspected of collaborating with overseas fraud groups for money laundering. This suspected illegal activity also highlights the challenges Taiwan faces in monitoring and regulating OTC exchanges.

Prosecutors have previously urged the FSC to regulate exchange operators, with the FSC responding that those not under regulation are considered illegal. However, in less well-known circumstances and without a license, it is not easy for the general public to discern compliant operators under the Anti-Money Laundering Act.

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