The prevalence of cryptocurrency investment and financial fraud poses significant challenges to victims, often leaving them unable to recover defrauded assets even after cases are solved. In a groundbreaking collaboration, Taiwan’s Criminal Investigation Bureau (CIB), the Judicial Reform Foundation (JRF), and blockchain-enabled financial institution XREX have successfully cracked down on a cryptocurrency fraud case, setting a remarkable legal milestone in Taiwan’s judicial history. The case’s in-charge, Detective Hsieh Rui Xuan from the CIB’s Sixth Investigation Corp, remarked, “Scam syndicates are extending their reach globally through the Internet and emerging technologies like blockchain technology. This has become a serious social issue in Taiwan. While Taiwan’s ability to combat overseas crime remains limited, seizing and returning fraudulent proceeds holds significant meaning for victims.”
He added that while law enforcement continues to enhance cryptocurrency tracing techniques, this has to be done within existing regulatory constraints.
“I hope this case is an important foundation, not only for remotely seizing cryptocurrency assets, but also for promoting collaborations between law enforcement agencies and experts in blockchain, law, and cybersecurity to combat the misuse of blockchain technology for fraudulent activities,” Hsieh said.
Sun Huang, XREX’s Chief Security Officer and General Manager, has over 15 years of international experience in cybersecurity and possesses both offensive and defensive capabilities recognized globally. He said, “This cooperation with law enforcement highlights how it is more difficult to launder money via a transparent and open blockchain network. All transactions are permanently recorded on-chain and cannot be tampered with or erased. The current difficulty lies in introducing and effectively using blockchain tracking and analysis tools. We believe XREX is already a leader in this regard and can be a partner trusted by law enforcement agencies.”
XREX has integrated top-tier blockchain analysis technologies and monitoring tools such as JPMorgan’s portfolio company TRM Labs, Mastercard’s CipherTrace, Chainalysis, and MistTrack. XREX continues to fulfill its corporate social responsibility by assisting investigations to analyze illegal currency flows, disclose scam tactics, and produce forensic reports, pro bono.
XREX is also the first company in Taiwan to be audited by the British Standards Institution, attaining the latest version of ISO/IEC 27001:2022 Information Security Management System certification. XREX Taiwan is listed on the Financial Supervisory Commission’s list of virtual assets service providers that have completed anti-money laundering compliance statements.
Sun Huang urged, “All cryptocurrency users must be vigilant and careful to verify. If one becomes a victim of scams, immediate action should be taken, such as transferring assets to a new wallet, filing a report as soon as possible, and preserving evidence. All these help in reducing losses. Be mindful to avoid follow-up scams targeting victims and claiming they can help recover assets. Always seek assistance from qualified operators and law enforcement agencies.”
XREX, co-founded by internationally-renowned cybersecurity expert Wayne Huang, is the first cryptocurrency company in Taiwan to obtain an in-principle approval for a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS) and has completed anti-money laundering statements to the Financial Supervisory Commission. Its predecessor, security software startup Armorize, specializes in vulnerability analysis and advanced persistent threat (APT) network attacks.
About XREX
XREX is a blockchain-enabled financial institution working with banks, regulators, and users to redefine banking together. We provide enterprise-grade banking services to small to medium-sized businesses (SMBs) in or dealing with emerging markets, and novice-friendly financial services to individuals worldwide.
Founded in 2018 and operating globally under multiple licenses, XREX offers a full suite of services such as digital asset custody, wallet, cross-border payment, fiat-crypto conversion, cryptocurrency exchange, asset management, and fiat currency on-off ramps.
Sharing the social responsibility of financial inclusion, XREX leverages blockchain technologies to further financial participation, access, and education.
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Author: BTCWire
