A former TSMC engineer is under investigation in Taiwan after authorities discovered he created an illegal money transfer network between Taiwan and South Korea. The plan has been implemented since 2018.
According to police, the man left TSMC due to health problems and thereafter began making underground payments to Taiwanese companies that sourced clothing in South Korea. Customers transferred funds to representatives of the Taiwanese network, and the involved participants paid for the goods in South Korea, bypassing the banking system. A logistics company that also shipped the products was used as a cover. Revenue is generated due to the difference between official and underground exchange rates.
To further complicate the investigation, organizers used a variety of channels to move funds. The money was transferred through local cryptocurrency exchanges and then sent to South Korea via Binance, Bybit and personal cold wallets. The former engineer uses technical skills to calculate profits and find ways to make more money from price fluctuations.
Police conducted 14 searches in three waves on July 14, 22 and 29. Eventually, the organizer and 11 other people were detained. The group was seized with NT$2.55 million in cash, 1,078 USDT, 1.71 million Korean won and other assets worth approximately NT$1.03 million. Items confiscated include Audemars Piguet and Rolex watches, as well as a Tesla Model S Plaid. A former TSMC employee was released on bail of NT$500,000 after his arrest.
