TechFlow news, on March 25, according to United Daily News, a father and son surnamed Zhou from Taichung, Taiwan, colluded with overseas fraud centers to open ten cryptocurrency chain stores across Taiwan. Using legitimate physical currency shops as cover, they secretly engaged in illegal money laundering activities amounting to a total of NT$3.1 billion. On March 22, Yunlin District Prosecutors Office indicted 17 individuals on charges including aggravated fraud and money laundering. The ringleaders—Zhou Hongwei, Liu Jinggu, and You Junfu—were each sought 20-year prison sentences by prosecutors.
Prosecutors pointed out that these cryptocurrency shops gained victims' trust by presenting themselves as "anti-fraud" establishments, luring investors unfamiliar with digital currencies. Victims handed over large sums of cash to exchange for Tether (USDT), after which members of the fraud center directed the illicit transfer of funds. The entire criminal operation was meticulously designed, featuring a collaborative model involving "fake crypto shops, real money mules" and "fake logistics, real couriers," resembling scenes straight out of a crime movie.
Investigations revealed that the Zhou family originally operated a ginger duck restaurant in Nantou. The eldest son, Zhou Hongwei, discovered the huge profits from over-the-counter cryptocurrency trading and began collaborating with overseas fraud centers. Through intermediary Liu Jinggu, he franchised legitimate physical currency stores. Zhou Hongwei not only brought his father Zhou Funing and younger brother Zhou Wei-jie into the business but also created internal documentation instructing employees on how to respond during police investigations. Within just one year, the Zhou family processed up to NT$3 billion through their ten USDT exchange outlets, profiting over NT$100 million from spreads, with more than a thousand victims scattered throughout Taiwan.
