- Two Taiwanese army officers are accused of passing classified documents to China for cryptocurrency
- The espionage included illegally accessing military networks and transmitting data via Telegram
- The number of crypto espionage cases between China and Taiwan has increased dramatically for a decade
- Recent espionage cases point to Beijing’s new strategy of targeting young officers
On September 3, the Cayotou District Prosecutor’s Office filed charges against two Taiwanese military officers in a case involving the sale of classified government data to mainland China in exchange for cryptocurrency payments.
According to investigators, Lt. Han and Capt. Lin transmitted sensitive documents via Telegram between December 2022 and February 2024, receiving 8,151 Tether (USDT) in exchange. This case was another example of increased crypto espionage activity between Taiwan and China.
Spying Activity and Cryptocurrency Payments
According to the investigation, Han made contact with representatives of mainland China by transmitting photos of classified military documents, including Taiwan’s cyber defense strategies. For this, he received a reward in the form of USDT cryptocurrency.
Captain Lin, a company commander, facilitated the espionage by providing Han with his login credentials to military networks, allowing Han to illegally download sensitive material.
The Rise of Crypto-espionage in Taiwan
Espionage cases in Taiwan have increased dramatically, especially in counting last decade. 40 such cases were reported between 2011 and 2023, according to The Control Yuan.
Experts such as Russell Hsiao of the Global Taiwan Institute point to a shift in China’s espionage strategy to target young officers motivated by financial gain, as opposed to the past when spies were often elderly military officers driven by ideological motives.
Conclusion
Tensions between China and Taiwan don’t seem to be about to subside, and it remains a very tense spot on the world map.
Even if they do not clash directly, it is a crossroads of interests between major economies, which means that various types of confrontations are likely to continue.
However, the fact that cryptocurrency is once again being used in such operations once again reminds us that it is a double-edged sword.
