Taiwanese Crypto Exchange Bitgin Under Investigation for Alleged Money Laundering
Summary:
Bitgin, a Taiwanese cryptocurrency exchange, is under investigation for alleged money laundering activities, leading to the arrest of its COO. Two local entrepreneurs were previously implicated in a similar scheme. The company, part of a self-regulatory organization, maintained its operations are normal and user rights unaffected. It ceased ties with implicated parties, voicing hopes for a swift resolution. Meanwhile, Taiwan's Financial Supervisory Commission granted its first securitized token license.
Bitgin, a Taiwanese cryptocurrency exchange, is presently under scrutiny by local law enforcement authorities, following allegations of money laundering. Early this week, local news outlets reported that Yuting Zhang, Chief Operating Officer of the company, has been apprehended due to his suspected involvement in the "Eighty-Eight Guild Hall" illicit money recycling scandal. Prior to this, Zhemin Guo and Chengwen Tu, both native entrepreneurs, faced allegations from the police regarding a massive money laundering operation. They allegedly utilized their foreign currency offices and crypto exchange profiles to clean up illegally obtained funds through international wire fraud. Chengwen Tu also stands accused of duping Taiwan's tax department by falsely claiming NTD 300 million ($9.28 million) as export tax reimbursements via overseas video game credit sales. Currently, Taiwan has no official certification system for cryptocurrency exchanges. In September, Bitgin, in association with fellow industry members, founded the Virtual Asset Service Provider Preparatory Office (VASP) to facilitate self-governance and advocate with political representatives. Responding to the ongoing investigation, Yuling Tsai, the chief legal officer of the Taiwan VASP Association, announced, "A member involved in the preparatory group became part of the investigation. Post this, the group convened an immediate meeting and publicly addressed the situation. The individuals involved in the case paused their participation in the preparatory group's operations voluntarily." On Monday, Bitgin declared that its operations continue to function normally and that the user rights remain unaffected. Bitgin stated that its COO, Yutian Zhang, was connected to the companies implicated in the Eighty-Eight Guild Hall fraud case from late 2021 to March 2022. However, the company mentioned that Zhang disconnected all ties with the involved parties when the money laundering charges came to light. Bitgin added, "Currently, we are in complete cooperation with the investigating authorities and providing all necessary aid, hoping for a prompt clarification of the facts." Related to this, the Financial Supervisory Commission of Taiwan recently granted its first securitized token license.
Published At
11/13/2023 5:01:45 PM
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