According to the official statement, the operation allowed criminals to launder their illicit proceeds through cryptocurrency transactions. Fraudsters used fake money transfer documents, fake credentials, and manipulated customer contact records to avoid detection by law enforcement. Although Binance did not clarify the case in question, it said that the operation was covered in the media. According to Binance, the operation falsified documents, including “fake customer contact records, and fake identity verification data,” to make it appear that individual traders were transferring approximately New Taiwan Dollars (about $6 million) worth of funds.

Through joint work with Binance, prosecutor Lo Wei-yuan from the Taipei District Prosecutor’s Office brought together all of the suspicions of the nine defendants facing charges such as money laundering, fraud and organized crime.

The press release stated:

“After receiving the request, Binance held a cross-border online meeting to discuss its strategy for cooperation with investigators and prosecutors.”

Binance actively cooperates with law enforcement agencies around the world, implementing measures and studies in addition to standard compliance. This includes the industry’s first training program for law enforcement, a worldwide coordinated effort to help law enforcement and prosecutors detect financial and cyber crimes and prosecute malicious actors.

In 2023, Binance applied to be registered under Taiwan’s Financial Supervisory Commission (FSC) and the Money Laundering Control Act. Local regulators have previously recognized the exchange’s collaborative efforts in assisting digital asset fraud investigations.

Additionally, in March, Binance hosted a virtual asset law enforcement training workshop for officers from the Keelung District Prosecutor’s Office in Taiwan, sharing its expertise to combat digital assets-related crimes.

Meanwhile, Taiwan regulators plan to introduce cryptocurrency regulations by the end of 2024. FSC Chairman Huang Tianzhu has expressed concern about the use of cryptocurrencies in illegal activities and plans to increase supervision over crypto exchanges and impose penalties.

Under the proposed law, foreign cryptocurrency platforms would face criminal penalties if they fail to establish local branches and comply with Anti-Money Laundering (AML) regulations.

Taiwan’s Ministry of Justice recently proposed changes to existing money laundering laws. These changes could impose imprisonment of up to two years and fines of up to $1.5 million for non-compliant companies. The changes aim to strengthen the crackdown on fraud and tightly regulate anti-money laundering measures for crypto service providers.