Taiwan Court Jails Cointhink Fraud Leader for 22 Years After USDT Scheme Hit 1,539 People
A Taiwan court has sentenced the mastermind of a cryptocurrency fraud ring operating under the name Cointhink Technology to 22 years in prison. The Shilin District Court delivered the verdict on July 20 to the suspect, identified only by his surname, Shih. Fourteen individuals were indicted in total on charges including violating the Fraud Crime Prevention Act.
According to the Shilin District Prosecutors Office, the fraudulent group falsely advertised Cointhink Technology as “the only platform authorized by the Financial Supervisory Commission” in Taiwan. Operating with organized gang elements, the group lured investors through a network of fake investment groups. Victims were instructed to purchase Tether (USDT) tokens with physical cash, which was then systematically laundered. The illicit cash was converted into U.S. dollars and transferred to offshore accounts to conceal the paper trail.
In a secondary layer of the scheme, victims were directed to transfer their existing USDT tokens to designated digital cold wallets. The gang then moved the cryptocurrency through multiple layered transfers, creating intentional “breakpoints” to blind law enforcement tracking and hide the origin of the proceeds.
Prosecutors revealed that between January 2014 and April 2015, the syndicate managed a massive money laundering pipeline moving more than $71.3 million in total volume. In total, 1,539 people fell victim to the operation.
The indictment against Shih and his 13 co-conspirators was initially filed last August by the Shih-chung District Prosecutors Office, which requested the total confiscation of all ill-gotten gains. Although prosecutors originally recommended a combined 25-year prison term, the court ultimately settled on a 22-year sentence. Shih can still appeal the verdict.