Yang Bin, a former Chinese billionaire once recognized 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. On August 26, 2024, he was also fined S$16,000 (approximately £9,600) for his role in the scam.
In April 2021, Yang founded A&A Blockchain Innovation, despite lacking a valid work permit in Singapore. He falsely claimed that his company owned 300,000 cryptocurrency mining machines and promised investors daily returns of 0.5%. However, these machines did not exist, and Yang operated a classic Ponzi scheme, using money from new investors to pay returns to earlier ones.
The fraudulent operation attracted over 700 investors, who together invested around $6.7 million (over £3.8 million) between May 2021 and February 2022. To further deceive investors, Yang instructed his co-conspirator, Wang Xinghong, to create an application that faked investment returns, making the scheme appear legitimate.
During the court proceedings, Yang admitted to eight charges, including conspiracy to cheat and operating without a valid work permit. Deputy Public Prosecutor Wong Shiau Yin highlighted Yang’s significant role in the scam, noting that none of the victims had received any restitution for their losses.
District Judge Brenda Chua emphasized Yang’s responsibility in the fraudulent operation, especially in comparison to his co-accused, whose legal proceedings are still ongoing. Yang’s past includes a controversial history, having gained notoriety in China for his involvement in the textile industry and for being appointed by North Korea in 2002 to oversee the economic development of the Sinŭiju Special Administrative Region. His career took a downturn when he was placed under house arrest by Chinese authorities in November 2002 due to tax evasion charges.
The judge took into account the large sums involved in the fraudulent scheme and the fact that the victims had not been compensated. Yang’s defense attorney, Teo Choo Kee, argued for a lighter sentence, citing Yang’s cooperation with authorities and his early guilty plea. However, the court upheld a firm stance, noting Yang’s role as the mastermind behind the scam.
This case highlights the ongoing challenges in the cryptocurrency sector, where scams and fraudulent schemes can easily deceive investors. Yang’s sentencing serves as a warning to others in the industry about the consequences of fraudulent activities.
As the crypto market continues to grow, regulatory bodies and law enforcement agencies are increasingly vigilant in addressing such scams to protect investors. Yang’s conviction sends a clear message that those who exploit the trust of investors will face serious repercussions for their actions.
