Binance Assists Taiwan in Resolving $6.2M Cryptocurrency Fraud

Binance’s Financial Crimes Compliance (FCC) department has teamed up with Taiwan’s Ministry of Justice Investigation Bureau and the Taipei District Prosecutors Office to address a significant case of money laundering involving digital assets worth 200 million New Taiwan dollars ($6.2 million).
According to an official statement, the criminals used cryptocurrency transactions to launder illicit funds. They utilized forged remittance documents, counterfeit identification information, and manipulated customer communication records to avoid detection by law enforcement.
In a statement given to Cointelegraph, Binance did not specifically mention the case but acknowledged that it had been reported in the media. Binance revealed that the operation involved falsifying documentation, such as “fake customer conversation records” and “forged identity verification data,” to create the impression that individual merchants were transferring funds totaling approximately NT$200 million ($6 million).
Through collaborative efforts with Binance, prosecutor Lo Wei-yuan from the Taipei District Prosecutors Office compiled evidence against nine individuals who were indicted on charges including money laundering, fraud, and organized crime.
Binance emphasized its commitment to going above and beyond standard compliance measures and actively cooperating with law enforcement agencies worldwide. The company has introduced various initiatives, including the industry’s first training program for law enforcement, to help detect and prosecute financial and cybercrimes.
In 2023, Binance applied to be registered under Taiwan’s Financial Supervisory Commission (FSC) and Money Laundering Control Act. Local regulators have previously recognized the exchange’s cooperation in investigations related to digital asset fraud.
Furthermore, Binance recently hosted a virtual asset law enforcement training workshop for officers from the Keelung District Prosecutors Office in Taiwan, sharing its expertise in combating digital asset-related crimes.
Meanwhile, Taiwan regulators plan to introduce cryptocurrency regulations by the end of 2024. The chairman of the FSC, Huang Tianzhu, has expressed concerns about cryptocurrencies being used for illegal activities and intends to strengthen oversight of crypto exchanges and impose penalties.
Under the proposed law, foreign cryptocurrency platforms would face criminal penalties unless they establish local branches and comply with Anti-Money Laundering (AML) regulations.
Taiwan’s Ministry of Justice has proposed amendments to existing AML laws, which could lead to jail terms of up to two years and fines of up to $1.5 million for noncompliant firms. The amendments aim to enhance the crackdown on fraud and establish strict regulations for crypto service providers’ money laundering prevention measures.