Key Points
- Yang Bin, a Dutch national and former Forbes-listed billionaire, has been sentenced to six years in jail for running a $5 million cryptocurrency Ponzi scheme in Singapore that defrauded over 700 investors.
- The scheme, operated through A&A Blockchain Innovation, falsely claimed to own 300,000 cryptocurrency mining machines and promised investors daily returns of 0.5%.
Yang Bin, a 61-year-old Dutch national, has been sentenced to six years in jail and fined $12,284 for orchestrating a multi-million dollar Ponzi scheme disguised as cryptocurrency investments in Singapore. The scheme, which operated between May 2021 and February 2022, attracted over 700 investors who collectively invested approximately $5 million.
Yang, who Forbes once listed as the second-richest man in China in 2001, pleaded guilty to eight charges, including conspiracy to cheat, working without a valid work pass, and hiring an employee without proper documentation. An additional 11 similar charges were considered during sentencing, as reported by CNA.
The Scheme’s Operations
Yang incorporated A&A Blockchain Innovation on April 20, 2021, shortly after arriving on a social visit pass in Singapore. The company claimed to own 300,000 cryptocurrency mining machines capable of generating daily returns of 0.5% for investors. However, these machines did not exist, and the scheme operated by using funds from new investors to pay returns to earlier participants.
To create a “veneer of legitimacy,” Yang developed marketing materials to entice investors, including presentation slides and videos. He also directed the development of a mobile application that purportedly allowed investors to buy tokens and monitor their daily returns. In reality, the app was a centralized software where system managers could input random figures to show fake returns.
Legal Proceedings and Sentencing
Deputy Public Prosecutor Wong Shiau Yin sought a sentence of six-and-a-half to seven-and-a-half years in jail, citing Yang’s role as the mastermind and the scheme’s sophistication. Yang’s lawyer, Teo Choo Kee, argued for a five-year sentence, comparing Yang’s culpability to that of co-accused Wang Xinghong, who was previously sentenced to five years in jail.
District Judge Brenda Chua noted Yang’s position as the mastermind and overall person in charge of the company, determining his culpability to be higher than Wang’s. The judge also highlighted the significant amounts involved and the lack of restitution to victims.
Authorities recovered $76,900 from Yang’s residence, identified as investors’ funds. The charges involved about $1.38 million across 12 victims, who lost around $846,000 after accounting for returns some had obtained through the scheme.
