A man surnamed Liu in Taichung and his team used the legal cloak of “Competition Nest Advertising Company” to secretly operate an illegal gambling transfer room, specializing in the operation of funds for gamblers using virtual currency. After a year of investigation and action, prosecutors finally seized investment-type savings insurance policies worth 25.89 million Taiwan dollars under Liu’s name and concluded the case, prosecuting 14 people including Liu.
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Operation of Gambler Funds with Virtual Currency
Prosecutors’ Action Exposes Illegal Gambling
First Wave of Action: Initial Arrest
Second Wave of Action: Seizure of Virtual Assets
Third Wave of Action: Expanded Investigation
Clear Division of Labor within the Group
Exposure of Large Amounts of Money: Deposits Exceeded 600 Million Taiwan Dollars
Taichung Prosecutor Bai Huishu discovered in this case that the 50-year-old man surnamed Liu used the legal “Competition Nest Advertising Company” as a cover, but actually operated an illegal gambling transfer room, and conducted fund operations for gamblers using virtual currency. The case is being investigated by the Fourth Team of the Criminal Investigation Bureau, the Fifth, Seventh, and Second Teams of the Taichung City Criminal Investigation Division, and the joint task force.
The police launched the first search operation on September 26th last year, arresting 7 group members and conducting technological analysis on the important evidence seized to trace Liu’s true identity and job responsibilities.
On January 30th this year, when Liu returned to Taiwan from abroad, prosecutors launched a second search operation, seizing an investment-type savings insurance policy worth 25.89 million yuan under his name, and obtained a court order to detain Liu.
On April 23rd this year, prosecutors launched a third search operation, again arresting 6 group members and expanding the investigation into the operation of the illegal gambling transfer room.
The investigation found that Liu and others had established customer service and control departments within the company. The customer service department was responsible for reviewing gambler membership qualifications and responding to sports event rules, odds, and other questions submitted online by gamblers; the control department was responsible for interfacing with the “entry and exit money channels,” actually operating computers to recharge gambling funds and withdraw cash for gamblers using virtual currency, concealing and disguising criminal proceeds, and engaging in money laundering activities.
Through technological analysis and analysis of virtual currency wallets, prosecutors traced the total amount of money deposited into the group’s account from “XX Water Room” to approximately 617.76 million Taiwan dollars.
The Taichung District Prosecutor’s Office concluded the case, determining that Liu and 14 others were suspected of organizing crimes, gambling, money laundering, and other charges, and filed a public prosecution against them. The court ordered the detention of Liu to prevent him from escaping or destroying evidence.