How to Address the Issue of Self-Embezzlement: Law Ministry Establishes Dedicated Platform and Transfers All 6.8 Million USDT Tokens

Activation of “Seized Virtual Asset Management System Platform”! 6.8 Million USDT Transferred in Full
In recent years, there has been an increase in incidents of cryptocurrency money laundering and fraud, leading to a growing emphasis on regulation by authorities. To enhance the efficiency and security of seizing virtual assets and completely deprive criminals of their ill-gotten gains, the New Taipei District Prosecutors Office announced in a press release yesterday (15th) that the Ministry of Justice has officially launched the “Seized Virtual Asset Management System Platform” on April 15th.
Following this, the New Taipei District Prosecutors Office has transferred all 6,798,270 stablecoin USDT (equivalent to approximately NT$239.4 million) that were previously seized and temporarily stored in a cold wallet into the platform, making it the first district prosecutor’s office to utilize a virtual asset account provided by a prosecutorial agency.


What are the pain points behind the establishment of the Ministry of Justice’s platform for safeguarding large amounts of stablecoins?
In recent years, the New Taipei District Prosecutors Office has investigated multiple cases, including the “88 Club” money laundering case, transnational gambling groups engaged in underground remittances, and fraud groups laundering money through individual currency exchanges, resulting in a large amount of cryptocurrency being seized.
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In November 2022, the New Taipei District Prosecutors Office investigated an underground remittance group, in which the person in charge of the “88 Club,” Guo Zemin, was suspected of multiple illegal activities and had cash amounting to NT$44.12 million and 6,412,959 USDT (equivalent to approximately NT$206 million) seized.
However, the storage of this large amount of stablecoins has become quite a challenging problem.
The New Taipei District Prosecutors Office has been reluctant to deposit the confiscated funds into a cold wallet due to concerns of hackers infiltrating and stealing the funds or causing damage to the wallet. Therefore, the large amount of seized cryptocurrency by the police could only be temporarily stored in a cold wallet prepared by the New Taipei District Prosecutors Office, with the wallet’s password, mnemonic phrase, and physical cold wallet being kept by different individuals.
Not only is this storage process quite cumbersome, but it also places a significant psychological burden on the custodial personnel. The New Taipei District Prosecutors Office also stated that storing confiscated cryptocurrency funds in a cold wallet is prone to risks such as private key loss and the risk associated with single-person custody. As a result, the evidence room often refuses to accept such items to avoid bearing responsibility.
The Ministry of Justice’s “Seized Virtual Asset Management System Platform” effectively solves the problem of storage after seizing cryptocurrency in the future.


The platform is designed to unify practices nationwide, allowing judicial police agencies to directly transfer seized cryptocurrency into the virtual asset accounts of specific prosecutorial agencies through the platform. The system will securely store the assets, avoiding issues such as improper custodial care or internal theft, while also integrating with the prosecutorial agency’s case management system to simplify the operational process.
In recent years, illegal fundraising and fraud cases have been rampant, and virtual currency has become a primary method for money laundering. The New Taipei District Prosecutors Office has stated that they will rigorously and swiftly investigate such cases, actively pursuing and seizing criminal proceeds. At the same time, the New Taipei Prosecutors Office once again urges the public to be cautious of investment traps and risks to avoid falling victim to them.
Proofread and Edited by: Gao Jingyuan