Yang Bin, Formerly China’s second-richest man has been sentenced to six years in Singapore for orchestrating a $5M crypto Ponzi scheme.
Yang Bin, once China’s second-richest man, has been sentenced to six years in prison in Singapore for his role in a crypto Ponzi scheme that defrauded over 700 investors.
Ravenewsonline reports that the 61-year-old, a Chinese-Dutch national, was also fined over $12,000. If he does not pay the fine, he will face an additional 40 days in jail.
Yang created A&A Blockchain Innovation in April 2021 without a valid work permit in Singapore. The company, which operated without proper documentation, falsely claimed to own 300,000 cryptocurrency mining machines, promising investors daily returns of 0.5%.
These machines did not exist. Yang used funds from new investors to pay returns to earlier ones, a classic Ponzi scheme tactic.
The scheme attracted over 700 investors between May 2021 and February 2022, who collectively invested more than $5 million. While some received returns, the total loss exceeded $750,000.
The court documents did not clarify if these losses were directly tied to Yang’s specific fraud charges.
Three other Chinese nationals were involved in the case: Chen Wei, Lu Huangbin, and Wang Xinghong.
Wang, who developed an app under Yang’s instructions to fake investment returns, was sentenced to five years in prison earlier this month. Chen and Lu’s cases are still in court.
Yang admitted to eight charges, including conspiracy to defraud, working without a valid permit, and hiring undocumented workers. An additional 11 charges were considered during sentencing.
The Deputy Public Prosecutor (DPP) highlighted Yang’s significant role as the scheme’s mastermind and his lack of effort to compensate the victims.
Yang’s lawyer argued for a lighter sentence, noting his cooperation with authorities and early guilty plea.
However, the court sentenced him to six years, considering his higher level of responsibility compared to his accomplices and the substantial financial losses caused by his actions.
Yang was arrested on August 17, 2023, and has been in custody since. His conviction underscores the dangers of fraudulent schemes in the crypto world.
