Taiwanese cryptocurrency exchange Bitgin has come under scrutiny from local law enforcement authorities due to concerns over potential involvement in money laundering activities. Recent reports reveal that Zhang Yuting, the company's chief operating officer, was apprehended by Taiwanese police on suspicion of being linked to the "Eighty-Eight Guild Hall" money laundering incident.
The investigation is rooted in accusations against two local businessmen, Guo Zhemin and Tu Chengwen, who allegedly utilized their foreign exchange offices and cryptocurrency trading accounts to launder illicit funds acquired through overseas wire transfer fraud. This scheme purportedly facilitated a multi-billion dollar money laundering operation. Additionally, Tu faces charges of defrauding state tax authorities by selling video game points overseas, resulting in NT$300 million (US$9.28 million) in export tax rebates.
Taiwan presently lacks an official licensing framework for cryptocurrency exchanges. In September, Bitgin, alongside industry peers, established a virtual asset service provider preparatory office to self-regulate and engage in advocacy efforts with political officials. Cai Yuling, general counsel of the Taiwan VASP Association, commented on the incident, stating that a member of the preparatory team was involved in the case's investigation. Consequently, the preparatory team swiftly convened a meeting, publicly addressed the situation, and suspended the participation of involved members in the team's work.
Addressing the allegations, Bitgin issued a statement on November 13, asserting that its operations remain unaffected, and user rights are maintained normally. The exchange revealed that Chief Operating Officer Zhang was allegedly associated with the Eighty-eight Guild Hall's money laundering episode from late 2021 to March 2022. However, Bitgin emphasized that upon discovering the accusations, Zhang ceased all communication with the involved parties.
Bitgin affirmed its full cooperation with investigating authorities and pledged to provide comprehensive assistance to facilitate a smooth and thorough investigation. The exchange expressed its commitment to uncovering the truth swiftly and completely in hopes of resolving the matter promptly.
