A former Chinese business magnate, once ranked as the second-richest man in China by Forbes in 2001, has been sentenced to six years in prison in Singapore for leading a fraudulent cryptocurrency investment scheme.
Yang Bin, a Chinese-Dutch national, was also fined S$16,000 (approximately £9,600) on 26 August 2024 for the crypto scam.
Yang established A&A Blockchain Innovation in April 2021, despite not holding a valid work permit in Singapore. He falsely claimed the company owned 300,000 cryptocurrency mining machines, promising investors daily returns of 0.5%.
However, these machines were non-existent, and Yang used funds from newer investors to pay returns to earlier ones, operating a classic Ponzi scheme.
The fraudulent scheme managed to deceive over 700 investors, who collectively invested around $6.7 million (over £3.8 million) between May 2021 and February 2022. To further the deception, Yang directed his co-conspirator, Wang Xinghong, to develop an application that fabricated investment returns, giving the illusion of a legitimate operation.
During court proceedings, Yang admitted to eight charges, including conspiracy to cheat and operating without a valid work permit. Deputy Public Prosecutor Wong Shiau Yin pointed to Yang’s role in the scheme, noting that the victims have yet to receive any restitution.
District Judge Brenda Chua said Yang’s responsibility in the operation, especially compared to his co-accused, whose legal proceedings are still ongoing.
Yang, who had a controversial past, including the crypto scam issue, previously gained notoriety in China for his involvement in the textile industry and his appointment by North Korea in 2002 to oversee the economic development of the Sinŭiju Special Administrative Region. His career was marred when he was placed under house arrest by Chinese authorities on tax evasion charges in November 2002.
The judge acknowledged the large sums involved in the fraudulent scheme and the absence of restitution for the victims. While Yang’s lawyer, Teo Choo Kee, argued for a lighter sentence, pointing to Yang’s cooperation with authorities and his early guilty plea, the court maintained a firm stance, given Yang’s role as the mastermind behind the operation.
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