Prosecutors in Taipei have indicted 35 people in connection with what they describe as a large-scale online gambling and money laundering operation that allegedly moved more than NT$30.6bn through payment processing apps, as reported by The Taipei Times.
The Taipei District Prosecutors Office said Lo, a 41-year-old restaurateur who operates Ming Shiang Yuan Cafe, was charged with money laundering, organized criminal activity and illegal online gambling. Prosecutors said they plan to seek a nine-and-a-half year prison sentence.
According to investigators, Lo launched the scheme in August 2020 after acquiring the source code for a payment system and building two apps known as HeroPay and MatchPay. These platforms allegedly allowed illegal online gambling operators in China Japan and India to move player deposits indirectly, reducing visible financial links to their sites.
Prosecutors said Lo hired a woman surnamed Huang to oversee finances and administrative tasks and rented office space under the name of his restaurant to conceal the true nature of the operation.
By June 2022, the group had created its own gambling site called Rich 11, offering baccarat slot games and sports betting. HeroPay was used to collect deposits from players.
Authorities estimate that NT$30.695bn flowed through the group's payment systems and gambling operations. Prosecutors said the funds were used for Lo's personal profits, daily capital for the platforms and investment into other ventures, including a separate restaurant business.
Lo, Huang and 33 others have been indicted under the Organized Crime Prevention Act, the Money Laundering Control Act and Criminal Code provisions related to online gambling. Prosecutors said the case reflects the increasing sophistication of illicit gambling networks operating across borders and the role of financial technology in facilitating criminal activity.
Taiwanese authorities say the payment platforms resembled financial technology tools but were structured to obscure gambling flows
