The Kaohsiung District Prosecutors Office has completed its investigation and indicted 26 people, including the 60-year-old Wang-Huang-surnamed owner of underground crypto dealer “Jinniu Baihui,” which billed itself as “the largest OTC dealer in southern Taiwan,” and her son, who served as CEO. They are suspected of laundering money for fraud syndicates. Prosecutors counted 395 victims across Taiwan and said the amount laundered exceeded NT$686 million. (Previously: A marketing company employee’s sudden death exposed a US$20.1 billion USDT laundering platform, with Taiwan serving only as a branch) (Background: FSC: Taiwan’s crypto-specific law expected to take effect in Q1 next year; existing exchanges have 21 months to obtain licenses) Key points Kaohsiung crypto dealer Jinniu Baihui suspected of laundering NT$686 million for fraud syndicates; 26 indicted Prosecutors counted 395 victims and estimated that NT$232 million in illegal proceeds should be confiscated The indictment says the business sold crypto at 6% to 10% above market price and provided a how-to manual Kaohsiung underground crypto dealer Jinniu Baihui, which called itself “the largest OTC dealer in southern Taiwan,” is suspected of laundering money for fraud syndicates. After completing its investigation, the Kaohsiung District Prosecutors Office indicted 26 people, including the mother-and-son owners. The case involves 395 victims. Prosecutors calculated that the amount of money handled for laundering exceeded NT$686 million, equivalent to about NT$1.74 million per victim on average. Prosecutors said Jinniu Baihui was run by a 60-year-old woman surnamed Wang-Huang, while her 31-year-old son, surnamed Wang, served as CEO. The company began soliciting customers in 2021 under the slogan “the largest OTC dealer in southern Taiwan.” Prosecutors allege that, under the guise of trading virtual assets, the business attracted fraud syndicates and money mules to launder money at its premises. OTC refers to transactions made directly between buyers and sellers, rather than through a centralized exchange. Those indicted include the mother and son, senior management, and counter staff at various branches. The alleged offenses include violations of the Organized Crime Prevention Act, joint fraud involving three or more people, the Money Laundering Control Act, and the Business Entity Accounting Act. Prosecutors have also asked the court to impose heavier sentences on the core members who directed the crimes. Crypto sold at 6% to 10% above market price According to an indictment cited by the United Daily News, Jinniu Baihui set prices for virtual assets 6% to 10% above market rates. In other words, customers buying NT$1 million worth of crypto had to pay an additional NT$60,000 to NT$100,000. The indictment says the business used this pricing to screen customers and share out its huge profits. The business also promised to help customers open accounts with overseas exchanges, then transfer virtual assets into fraud syndicates’ wallets. It also provided a how-to manual instructing victims on how to respond to questions. Prosecutors believe the business used overseas exchanges to create breaks in the money trail, making it harder to trace where the funds went. The United Daily News reported that Jinniu Baihui International Development Co., Ltd. had not completed the legally required anti-money-laundering compliance declaration with the Financial Supervisory Commission. The CEO controlled cold wallets and exchange accounts. The company had multiple branches across Taiwan and hired staff to work in customer service, accounting, and marketing. It also ran advertisements, offered gifts for large purchases, and called taxis for customers, presenting itself as a legitimate financial institution. Internal group chat allegedly mocked victims Members of Jinniu Baihui’s internal LINE group chat sometimes mocked victims. Messages included “It’s obvious they got scammed” and “They’re so stupid, they deserve to get scammed.” Police and prosecutors believe that everyone in the company, from top to bottom, knew customers were being defrauded but still helped launder money. The United Daily News reported that prosecutors found the business frequently dealt with fraud syndicates despite knowing it was not a legally licensed crypto dealer. Some of these groups described themselves as “in the fraud business” or a “funding pool,” while others committed fraud through fake relationships or fake investments. The business did not turn them away; instead, it devised a “one-stop” business model and allegedly helped syndicate money-mule leaders evade large cash transaction reporting requirements. Jinniu Baihui is also suspected of failing to issue invoices as required by law from October 2023 onward, concealing its continued illegal operations. The accounting documents it issued allegedly recorded only selectively chosen, very low amounts in order to evade taxes. Frequently asked questions How many people were indicted in the Jinniu Baihui money-laundering case? The Kaohsiung District Prosecutors Office indicted 26 people, including the 60-year-old owner surnamed Wang-Huang, her 31-year-old son who served as CEO, executives, and counter staff at the various branches. The charges involve organized crime, aggravated fraud, and money laundering. Was the amount laundered by Jinniu Baihui NT$686 million or NT$3 billion? The figure of more than NT$686 million is the amount prosecutors attributed to the 395 victims. The nearly NT$3 billion figure reported by the United Daily News refers to the total funds handled; the two figures cover different scopes. Related reports Bi-Xiang Exchange laundered money for fraud syndicate! Mastermind Shih Chi-jen sentenced to 22 years in first instance; funds exceeded NT$2.3 billion YouTube channel “Crypto Trading Crash Course” instructor suspected of being a fraud ringleader, luring members to buy USDT on a fake platform Taichung woman took out a personal loan and mortgaged her home to buy gold bars and exchange them for USDT; discovered she had been scammed out of NT$15 million only when she tried to withdraw funds “Kaohsiung OTC crypto dealer Jinniu Baihui suspected of laundering NT$686 million for fraud syndicate; 26 people, including mother-and-son ringleaders, indicted” This article was first published by BlockTempo (the most influential blockchain news media).