China's Ex-Second Richest Man Yang Bin Given 6 Years Jail Term
Yang Bin, the former Chinese business magnate who was once ranked as the second-richest man in China by Forbes in 2001, has been sentenced on 26 August, to six years in prison in Singapore.
The 61-year-old Chinese-Dutch national was convicted for operating a multi-million-dollar Ponzi scheme masquerading as a crypto investment operation resulting in over $5 million lost.
China’s second richest man jailed for 6 years over $5 million crypto fraud - https://t.co/kGV6FXFYN9 pic.twitter.com/1WC4E6b1SJ
— Nairametrics (@Nairametrics) August 26, 2024
He was also fined over $12,000.
Should he fail to pay the fine, he will face an additional 40 days of imprisonment.
Yang Bin's Crypto Fraud Deceived Over 700 Investors
Yang Bin founded A&A Blockchain Innovation on 20 April 2021, without a valid work permit in Singapore.
He hired foreigners for the company, also lacking proper documentation, after entering Singapore on a social visit pass.
Yang falsely claimed that A&A owned 300,000 cryptocurrency mining machines and promised investors daily returns of 0.5%.
However, these machines were fictitious, and Yang used the classic Ponzi scheme tactic of paying returns to earlier investors with funds from new ones.
Between May 2021 and February 2022, the scheme attracted over 700 participants who collectively invested over $5 million.
Despite some investors receiving returns, the total loss exceeded $750,000.
Court documents did not specify if these investors were connected to Yang's cheating offenses.
Three other Chinese nationals were implicated in the case: 43-year-old Chen Wei, 60-year-old Lu Huangbin, and 40-year-old Wang Xinghong.
Source: Singapore Police Force
Yang directed Chen to collect funds from investors, using the money for personal expenses. https://www.coinlive.com/news/another-cryptocurrency-scam-broke-out-in-singapore-cto-wang-xinghong-0
Deputy Public Prosecutor (DPP) Wong Shiau Yin noted that Yang had recruited Lu, Chen, and Wang to join A&A, with Yang being the mastermind behind the operation.
Wang, who pleaded guilty to six cheating charges, was sentenced to five years in jail in early August.
He had developed an app at Yang's instruction to fabricate investment returns, creating a centralised system where the manager could input random figures to simulate real returns.
Chen and Lu's cases remain ongoing.
The Charges Against Yang Bin
During court proceedings, Yang admitted to eight charges, including conspiracy to defraud, working without a valid permit, and employing an individual without proper documentation.
11 additional charges were considered in sentencing.
DPP Wong emphasized Yang's significant role as the mastermind behind the operation, noting that he made no effort to compensate the victims.
DPP Wong argued for a sentence of six-and-a-half to seven-and-a-half years, citing Yang's premeditation and the sophistication of the scheme, evidenced by the app and marketing materials used.
Yang's lawyer, Teo Choo Kee, argued for a reduced sentence of five years or slightly more, highlighting Yang's cooperation with authorities and his early guilty plea.
Teo contended that Yang's culpability was only slightly greater than that of his co-accused, Wang.
District Judge Brenda Chua sentenced Yang to six years in prison, taking into account his higher level of culpability compared to his co-accused.
The judge also noted the substantial sums involved in the scheme, the long-standing grievances of the victims, and the lack of restitution.
Yang was arrested on 17 August 2023, and has been in remand since.