In a groundbreaking development for digital asset security and judicial innovation, Taiwanese authorities, in collaboration with blockchain experts and cryptocurrency exchanges, have successfully returned stolen crypto assets to victims—despite the absence of an identified suspect or formal defendant. This unprecedented case marks a pivotal moment in the fight against cross-border crypto fraud and sets a powerful precedent for future investigations.
The Incident: A Sophisticated Phishing Attack
On February 26, 2024, a high-profile cryptocurrency investor known as Mr. Wan fell victim to a sophisticated phishing scam while using MetaMask, a decentralized wallet commonly referred to as "Fox Wallet." The attack occurred during his interaction with Friend.tech, a decentralized social platform built on the Base blockchain.
The fraudsters impersonated Forbes media representatives, sending Mr. Wan a malicious link under the guise of a journalistic interview. Once he interacted with the site, his wallet credentials were compromised, and his Ethereum (ETH) holdings were swiftly drained.
👉 Discover how blockchain analysis can protect your digital assets today.
Because MetaMask is a non-custodial wallet, there was no customer support channel to appeal to—leaving Mr. Wan with limited options. However, due to his active presence in the crypto community, he immediately shared his experience online. Within six hours, cybersecurity firm SlowMist and exchange OKX had identified the theft and frozen the stolen funds on their platform.
Critical 72-Hour Window and Cross-Institutional Coordination
While OKX was able to freeze the assets temporarily, internal protocols required official intervention from Taiwanese law enforcement within 72 hours to justify continued detention of the funds. This tight timeline triggered urgent coordination between multiple parties:
- Criminal Investigation Bureau’s 6th Division
- Judicial Reform Foundation, represented by advocate Mei-Hui Chen
- XREX Exchange, providing blockchain forensic analysis
- SlowMist Technology, offering real-time threat intelligence
Mei-Hui Chen played a crucial role in compiling transaction flow documentation and assisting Mr. Wan in filing an official report. Working closely with prosecutors, she helped draft the legal motion for asset seizure—despite the absence of a named defendant.
This presented a significant legal challenge: How could stolen funds be returned without a formal criminal charge or accused individual?
XREX Steps In: Blockchain Forensics as Legal Evidence
To meet judicial standards, authorities needed verified, third-party technical evidence confirming both ownership of the original wallet and the illicit movement of funds. Enter XREX, which deployed its advanced blockchain analytics capabilities using tools like TRM Labs and SlowMist’s MistTrack.
XREX’s security team conducted cross-chain transaction analysis, tracing every movement from the compromised MetaMask wallet through intermediary addresses and ultimately to the OKX exchange. Their comprehensive crypto flow forensic report provided irrefutable proof of theft and fund trajectory—serving as admissible digital evidence in court.
“Blockchain’s transparency makes money laundering harder than ever—every transaction is permanent and immutable,” said Sun Huang, CISO and General Manager at XREX. “The real challenge lies in leveraging the right tools to interpret this data effectively.”
Setting a New Precedent in Digital Justice
This case is historic not only because assets were recovered but because it redefines what's legally possible in crypto crime resolution. For the first time in Taiwan, courts authorized the return of defrauded digital assets without a named defendant, relying instead on blockchain forensics and institutional cooperation.
Sun Huang emphasized that XREX has integrated top-tier blockchain monitoring systems—including Chainalysis, CipherTrace (acquired by Mastercard), and TRM Labs (backed by JPMorgan)—to fulfill its corporate social responsibility in combating financial crime.
Moreover, XREX is:
- The first company in Taiwan certified under ISO/IEC 27001:2022 by the British Standards Institution (BSI)
- A registered virtual asset service provider compliant with Taiwan’s Financial Supervisory Commission (FSC) anti-money laundering regulations
- A recipient of provisional approval for a Major Payment Institution (MPI) license from Singapore’s Monetary Authority (MAS)
These credentials position XREX not just as an exchange, but as a trusted partner in regulatory technology and digital law enforcement.
👉 Learn how secure crypto platforms are transforming financial safety and compliance.
Introducing XRAY: A Public Tool Against Crypto Fraud
Recognizing that prevention is as vital as recovery, XREX launched XRAY, a blockchain wallet address lookup tool designed for both the general public and law enforcement agencies.
XRAY enables users to:
- Check the risk profile of any wallet address
- Identify links to known scam sites or exchanges
- Trace suspicious fund flows involving Bitcoin (BTC), Tether (USDT), and other major cryptocurrencies
Currently available via LINE bot in free basic and advanced versions, XRAY will soon launch a web interface and open API access—empowering broader investigations into on-chain fraud.
Core Keywords for SEO Optimization
- Crypto fraud recovery
- Blockchain forensic analysis
- Decentralized wallet security
- Cryptocurrency asset return
- Phishing attack prevention
- Chainalysis alternative
- Regulatory technology (RegTech)
- On-chain transaction tracing
These keywords reflect high-intent search queries from victims, investigators, and crypto users seeking solutions to real-world threats—ensuring this content aligns with user needs and search engine visibility.
Frequently Asked Questions
Q: Can stolen crypto be recovered if the hacker is overseas?
A: Yes. While extradition remains challenging, exchanges like OKX and forensic firms like XREX can freeze and trace funds across borders. With proper legal documentation, stolen assets can still be returned—even if the perpetrator remains unidentified.
Q: How does blockchain analysis prove ownership of a wallet?
A: While wallets are pseudonymous, forensic tools analyze transaction patterns, timestamps, IP metadata (when available), and interaction history to establish likely ownership—especially when combined with user reports and behavioral data.
Q: What should I do immediately after being hacked?
A: Act fast:
- Transfer remaining funds to a new, secure wallet
- Document all transactions and communications
- Report to law enforcement and provide wallet addresses
- Contact reputable blockchain analysts or compliant exchanges for assistance
Q: Is it safe to use tools like XRAY for personal checks?
A: Absolutely. XRAY is designed for public use and does not store or expose private keys. It simply analyzes publicly available blockchain data to assess risk levels associated with specific addresses.
Q: Why is this case significant for future crypto crime cases?
A: It proves that justice doesn’t require catching the criminal first. By validating blockchain forensics as legal evidence and enabling remote asset freezing, this model can become a template for global cooperation in combating digital fraud.
Final Thoughts: A Blueprint for Global Collaboration
This landmark case demonstrates that effective responses to cybercrime require more than just law enforcement—they demand collaboration across tech, finance, and policy domains. With phishing attacks growing more deceptive and cross-jurisdictional challenges persisting, initiatives like XREX’s XRAY and proactive industry partnerships are essential.
As Sun Huang aptly stated: “Victims must act quickly—and they must seek help from legitimate sources.” Avoid secondary scams promising asset recovery; instead, rely on regulated platforms and official channels.
The fusion of blockchain transparency, advanced analytics, and inter-agency trust has opened a new frontier in digital justice—one where victims no longer have to wait for arrests to get their lives back.