Taiwan Court Jails Cointhink Fraud Leader for 22 Years After USDT Scheme Hit 1,539 People

Crypto NewsPublished:Jul 21, 2026, 1:30 AMTaiwan Court Jails Cointhink Fraud Leader for 22 Years After USDT Scheme Hit 1,539 People

A Taiwan court sentenced the leader of a major crypto fraud ring, a man surnamed Shih, to 22 years in prison. In total, 14 people were indicted.

WRITTEN BYTerence ZimwaraSHAREPublished: Jul 21, 2026, 1:30 AM

Key Takeaways

• Shih received a 22-year prison sentence in Taiwan for leading the Cointhink crypto fraud ring.
• The ring laundered $71.3 million USD via Tether’s USDT, exposing risks in unverified crypto exchange platforms.
• Suspect Shih can appeal his 22-year sentence while prosecutors seek to seize assets from 14 defendants.

Deceptive Credentials Exploited Victims

The mastermind of a major cryptocurrency scam operating under the name Cointhink Technology has been sentenced to 22 years in prison after a network defrauded over 1,500 investors out of more than $37.14 million (NT$1.2 billion). The Shilin District Court on July 20 handed down the sentence to the main suspect, identified only by his surname, Shih.

Fourteen individuals in total were reportedly indicted in connection with the criminal operation on charges that included violating the Fraud Crime Prevention Act. According to an investigation spearheaded by the Shilin District Prosecutors Office, the fraudulent group lured investors by falsely advertising Cointhink Technology as “the only platform authorized by the Financial Supervisory Commission” in Taiwan.

Operating in tandem with organized gang elements, the group channeled targets through a web of fake investment groups. Gang members guided victims to purchase the tether tokens with physical cash, which was then systematically laundered. Prosecutors revealed that the group converted the illicit cash into U.S. dollars and transferred it to offshore accounts to conceal the paper trail.

In a secondary layer of the scheme, victims were instructed to transfer their existing USDT tokens to designated digital cold wallets. The gang then moved the cryptocurrency through multiple layered transfers to create intentional “breakpoints,” effectively blinding law enforcement tracking and hiding the origin of the proceeds.

Data released by prosecutors showed that between January 2014 and April 2015, the syndicate managed a massive money laundering pipeline moving more than $71.3 million in total volume. In total, 1,539 people fell victim to the operation.

The indictment against Shih, who can still appeal the verdict, and his 13 co-conspirators was initially filed last August by the Shih-chung District Prosecutors Office, which actively requested the total confiscation of all ill-gotten gains.

Though prosecutors originally recommended a combined 25-year prison term, the Shilin District Court ultimately settled on the 22-year sentence.

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