In April 1997, Pai was kidnapped, held for ransom, and murdered by a group of people led by Chen Chien-hsing (陳進興; Chén Jìnxīng), Lin Chun-sheng (林春生; Lín Chūnshēng), and Kao Tien-meen (高天民; Gāo Tiānmín), a trio of criminals previously known to the National Police Agency.

[citation needed] Pai Hsiao-yen's mutilated body, weighted down with dumbbells, was found in a drainage ditch in Zhonggang Dapai, Taishan Township on April 28, 1997.

[4] Four suspects were arrested, but three of the main criminals, Chen Chien-hsing (陳進興; Chén Jìnxīng), Lin Chun-sheng (林春生; Lín Chūnshēng), and Kao Tien-meen (高天民; Gāo Tiānmín) escaped.

[7] He was then found guilty for Pai Hsiao-yen's murder during a re-trial, but received a life sentence each for both crimes, wich were commuted to 20 years because of his voluntary surrenders.

[10] The shootout drew a massive police response of over 800 officers, including the Thunder Squad, to lock down and search the district, but Kao and Chen were not found.

[13] On November 18, Chen, the last surviving criminal, broke into the residence of Colonel Edward McGill Alexander, the South African military attaché to Taipei, and took the family hostage.

[5][9] Demonstrators marched on 4 May 1997[17] and 18 May 1997,[18] demanding Premier Lien Chan's resignation,[19] partially over the rise in violent crime as evidenced by the then-unsolved murders of Pai, Peng Wan-ru,[20] and Liu Pang-yu.