Taiwanese police have dismantled an underground money laundering network that allegedly converted virtual gaming coins into cash, processing more than NT$8bn over two years, as reported by The Liberty Times.
Authorities said the group, led by a 54-year-old man surnamed Wang, exploited legitimate online gaming platforms that provide entertainment-only virtual coins without official cash-out functions. The syndicate advertised coin-to-cash exchange services, effectively transforming players into gamblers by enabling off-platform redemption.
Investigators from the Criminal Investigation Bureau said Wang and his associates operated from an office in New Taipei City’s Tucheng District. The group allegedly recruited staff and used nominee accounts rented for about NT$5,000 per month to handle deposits and withdrawals. To expand transaction capacity, the network later established six shell companies disguised as international trade and technology firms to process funds.
The group reportedly promoted itself as a “coin trader” within gaming channels, offering exchange services for platforms including Star City and other popular sites. Authorities estimate the syndicate earned profits exceeding NT$100m by capitalizing on exchange rate differences between buying and selling virtual coins.
Police first raided the operation on July 28 last year, questioning 12 staff members. Despite the crackdown, the group allegedly resumed operations within weeks. Wang later died by suicide in October during the investigation.
In a second coordinated operation on December 16, police summoned 17 additional suspects, including Wang’s former wife and children. In total, 30 individuals have been referred to prosecutors on charges including organized crime, gambling and money laundering.
The group allegedly profited more than NT$100m from exchange rate spreads on virtual gaming coins
