Taiwan Indicts Prince Group Over Massive USDT-Based Money Laundering Scheme and Custom Crypto Wallet

The Taipei District Prosecutors Office has concluded a sweeping investigation into the Cambodian-based “Prince Group,” uncovering an elaborate money laundering operation that leveraged Tether (USDT) and even a proprietary cryptocurrency wallet, “OJBK Wallet,” to funnel illicit funds into Taiwan. This sophisticated scheme allowed for seamless cash withdrawals across multiple countries, effectively obscuring financial trails.

Yesterday, the Taipei District Prosecutors Office formally announced the indictment of 62 individuals, including alleged group leader Chen Zhi, and 13 associated companies. Charges span violations of the Money Laundering Control Act, the Organized Crime Prevention Act, and gambling offenses. Prosecutors are seeking a maximum sentence of 13 years for Chen Zhi, while core executive Li Tian faces a recommended sentence of 20 years. The total illicit funds laundered in this case exceeded an astounding NT$10.7 billion (approximately US$339 million), with seized assets—including luxury goods, high-end vehicles, mansions, and financial accounts—valued at over NT$5.5 billion (approximately US$174 million).

The Multi-Layered Laundering Mechanism

Investigators revealed that Chen Zhi orchestrated a complex network to conceal criminal proceeds. He directed group members to engage in cryptocurrency and online gambling activities across China, Southeast Asia, and Taiwan. The operation involved establishing 250 offshore companies in 18 countries and managing 453 domestic and international financial accounts. The group exploited these entities by fabricating false transaction contracts between their controlled offshore companies, then channeling approximately NT$9.7 billion through foreign exchange pipelines into 16 Taiwanese company accounts. These funds were subsequently used to acquire luxury residences and high-end vehicles, effectively “cleaning” the illicit money.

Introducing the “OJBK Wallet”: A Custom Tool for Evasion

Crucially, to facilitate the inflow of the Prince Group’s crypto-based criminal proceeds into Taiwan and enable discreet cash withdrawals globally, Chen Zhi instructed his team to develop the “OJBK Wallet.” This bespoke application was designed to connect directly with underground remittance networks (often referred to as “money mules” or “water rooms”) in Taiwan, Singapore, Japan, and other locations. Utilizing USDT for cross-border transfers, the group laundered over NT$629.92 million. This cash was then retrieved from these hubs by members to purchase luxury cars, premium goods, and cover the Prince Group’s operational expenses in Taiwan.

According to a report by the Liberty Times, the OJBK Wallet employed a cold wallet architecture, requiring physical device interaction for transaction signing. This design made it theoretically resistant to remote hacking and independent of traditional exchanges or third-party platforms, thereby circumventing Know Your Customer (KYC) verification and regulatory oversight. Combined with methods such as underground remittances and coin mixing, transactions were fragmented, significantly increasing the difficulty of tracing the cryptocurrency flow.

Developed by Cheng Wei Technology, a Prince Group-affiliated company in Taiwan, the OJBK Wallet was exclusively tailored for the group’s senior executives. Its use required explicit approval from Li Tian, the group’s highest-ranking leader in Taiwan, and its primary functions were cash withdrawals and transfers.

How the OJBK Wallet Facilitated Cash Withdrawals and Transfers:

• Cash Withdrawal: Users would select “Contact Customer Service” within the app, specify the amount, time, and location, and upload a photo of a banknote’s serial number. A runner would then collect the cash from a designated “water room,” deliver it to the specified location, and verify the money against the uploaded serial number before handing it over.
• Transfers: For transfers, users submitted the recipient’s account details. The backend would then coordinate with a “water room,” transferring funds through multiple nominee accounts, after which the recipient could collect the money from the hub.

US$1.7 Billion Bitcoin Transfer! Prince Group’s Chen Zhi Suspected of Attempting to “Sever Financial Flow” to Evade Investigation