New taipei: The Criminal Investigation Bureau (CIB) announced on Thursday that it had dismantled a money laundering ring, arresting five individuals suspected of concealing NT$30 billion (US$1.02 billion) in illicit funds through e-commerce platforms over a span of one year.
According to Focus Taiwan, the CIB’s operation and subsequent arrests followed an investigation into suspicious financial activities facilitated by unauthorized third-party payment providers and a gambling syndicate. CIB official Huang Wei-ho revealed during a news conference that a special task force, led by prosecutors from the New Taipei District Prosecutors Office, uncovered the suspected money laundering operation. The ring allegedly used illegal third-party payment companies and e-commerce platforms to solicit banks for unlimited virtual accounts.
These accounts were reportedly linked to gambling websites, enabling bettors to fund and place bets seamlessly. Huang identified the alleged ringleader as a 45-year-old man named Lee. The investigation found that Lee and his accomplices established two illegal third-party payment firms and two companies, falsely claiming to operate e-commerce platforms to obtain virtual account services from banks.
The platforms did feature real products, which allowed the suspects to simulate legitimate online sales and mask illegal transactions. They acquired numerous virtual accounts through these e-commerce platforms, integrating them with gambling websites via an application programming interface (API). When users opted to top up their gambling accounts, a virtual account was instantly created, allowing direct fund transfers to complete the process.
Huang explained that the money laundering ring essentially provided “real-time payment services” to the gambling syndicate, enhancing the efficiency of illegal fund transfers while evading financial oversight and police detection. This significantly complicated the CIB’s investigation.
From December 2023 to March 2025, Lee and his associates reportedly facilitated the collection of at least NT$30 billion in gambling funds for online gambling sites. During this time, the gambling syndicate profited approximately NT$3 billion, while Lee personally earned around NT$15 million by charging a handling fee between 0.3 percent and 0.5 percent.
After months of surveillance and investigation, the CIB task force launched a coordinated raid on March 13, targeting the two third-party payment companies and arresting five suspects, including Lee. Authorities seized a house, a Mercedes-Benz used in the operation, and NT$66.08 million held in bank accounts.
In June, the five suspects were transferred to the New Taipei District Prosecutors Office on charges including fraud and money laundering. Lee remains in custody as investigators continue efforts to identify the mastermind behind the gambling syndicate.