Exchange shields scam group for money laundering, members previously attended anti-money laundering courses at the Institute of Money Laundering Prevention.

The Tainan City Prosecutor's Office successfully uncovered a fraud case last November involving the investment in the cryptocurrency "Tether" (USDT). This case involved 11 accomplices who were re-detained by the Tainan District Court for allegedly providing money laundering services to the fraud group.

Accomplices mainly in their 20s, with one even attending anti-money laundering course

According to reports, most of these accomplices come from central and northern Taiwan, with ages mostly in their twenties. Notably, one 28-year-old man had attended the Financial Academy's anti-money laundering course and became an expert in anti-money laundering. However, he chose to go against what he learned and used his knowledge to assist a fraud group in evading legal consequences.

Difficult to define money laundering for crypto exchanges? Only one admits guilt

During the investigation, only a man surnamed Dai admitted to the crime, while others vehemently denied involvement. Faced with this situation, the prosecution urges the judges to give appropriate judgments to uphold justice. It is reported that this fraud case has caused at least 20 victims, with losses ranging from tens of thousands to millions of dollars.

Are crypto exchanges unknowingly aiding fraud?

Since March 2022, the fraud team has been promoting Tether (USDT) on social media platforms such as LINE, Instagram, and Facebook under the guise of a company named "Youqiu Biyingying Dai Gou Hui She," registered with the Ministry of Economic Affairs to appear as a legitimate business to attract investors.

They lured victims into investing through false friendships, investment invitations, etc. The accused crypto exchanges provided USDT transactions to establish trust. When victims bought USDT from the exchanges and transferred to the fraud group's designated wallet addresses, the funds would be moved to the fake investment platforms, resulting in the loss of victims' funds.

With the prosecution actively pursuing the case, society hopes for a stronger deterrent effect on fraudulent activities to protect the legitimate rights and interests of investors.