Mirror Weekly today revealed that prosecutors found that the current individual involved in violating the National Security Law, CTN reporter and anchor Lin Chen-You, has a large amount of abnormal USDT (Tether) transactions, which have become his source of funds.
(Background: Virtual currency involved in election! Former People’s Party spokesperson Ma Zhiwei received overseas USDT funding and was detained under the Anti-Infiltration Law)
(Additional background: Former coast guard member received 18,000+ Tether and was accused of espionage, sentenced to 7 years for selling secrets in August)

Table of Contents

• On-chain payments replace cash settlements
• “Cryptocurrency bribery” cases have precedents
  • Low cost and anti-censorship features make it a tool for infiltration

Mirror Weekly reports that Lin Chen-You, a political reporter and anchor for CTN News, was targeted by Qiaotou District Prosecutors to seize his personal phone and accounts, which contain large amounts of abnormal transactions, including USDT transfer records.

On-chain payments replace cash settlements

Mirror Weekly states that prosecutors searched Lin Chen-You’s residence, seized his phone and computer, and upon examination found abnormal transactions and unknown sources of USDT in his accounts. Over the past year, Ma Zhiwei is suspected of using the privacy features of cryptocurrencies to receive large sums of Chinese funds, initially involving bribes to基层士官兵 (lower-ranking officers), totaling over NT$1 million. Since USDT transaction fees are less than one dollar and settlement can be completed in seconds, USDT may become a medium for bribery and corruption.

“Cryptocurrency bribery” cases have precedents

Red funds wrapped in cryptocurrency are not the first case. On January 6 this year, a national security case was sentenced, involving a former coast guard member named Li Xing who received 18,500 USDT to leak secrets to China. The Kaohsiung High Branch Court sentenced him to 7 years and 8 months in August. The other party offered a clear compensation plan: transferring about NT$60,000 worth of USDT each quarter, with annual bonuses and subsidies for iPhone 11 and iPhone 13 as work equipment.

Li Sheng filmed and transmitted sensitive data via Telegram within a year, including missile alert zones, deployment of mission ships, and patrol plans. He ultimately earned 18,522 USDT, equivalent to less than NT$580,000.

In 2024, Ma Zhiwei, spokesperson for the Taiwan People’s Party Taoyuan branch and independent candidate for Taoyuan’s first legislative district, is suspected of receiving virtual currency funding worth millions of yuan from the Chinese Communist Party to run for office. The second-instance court sentenced him to 2 years and 8 months, with the right to appeal.

Low cost and anti-censorship features make it a tool for infiltration

The reason USDT has replaced cash as an infiltration tool is due to its extremely low transaction fees, 24-hour global availability, and lack of intermediate review mechanisms. For soldiers facing financial difficulties, receiving equivalent US dollars within minutes is far more convenient than traditional offline channels.