Chinese Tycoon Yang Bin Sentenced to 6 Years for Ponzi Scheme

• Yang Bin was sentenced to 6 years in Singapore for a $5M cryptocurrency Ponzi scheme.
• Over 700 were defrauded by Yang’s fake crypto mining scheme using non-existent machines.
• Yang’s Ponzi scheme involved fake crypto mining investment returns with a fraudulent app.

Yang Bin, a former textile mogul and once China’s second-richest man, has been sentenced to six years in prison by a Singaporean court for masterminding a fraudulent cryptocurrency investment scheme that defrauded over 700 investors. The 61-year-old, a Chinese-Dutch national, was also fined S$16,000 (approximately $12,200).

The Scheme and Its Operation

Yang established A&A Blockchain Innovation in April 2021 after arriving in Singapore on a social visit pass. The company claimed to own 300,000 cryptocurrency mining machines and promised investors daily returns of 0.5%. However, the machines were non-existent, and the company operated as a classic Ponzi scheme, using funds from new investors to pay returns to earlier participants.

The scheme attracted significant attention, with over 700 investors contributing more than S$6.7 million (over $5 million) between May 2021 and February 2022. Yang’s deceitful operation centered around an app designed to simulate investment returns, developed under his directive by co-accused Wang Xinghong, who has already been sentenced to five years in prison.

Legal Proceedings and Sentencing

Yang pleaded guilty to eight charges, including conspiracy to cheat, operating without a valid work permit, and hiring undocumented workers. An additional 11 charges were considered during his sentencing. Deputy Public Prosecutor Wong Shiau Yin showcased Yang’s pivotal role in the fraudulent scheme.

Despite his early guilty plea and cooperation with authorities, Yang’s higher culpability compared to his accomplices, particularly Wang, was a key factor in the court’s decision. District Judge Brenda Chua emphasized Yang’s position at the “top of the hierarchy” in the operation, noting that the sophistication of the scheme, bolstered by the app and marketing materials, further aggravated his crimes.

Yang’s lawyer argued for a lighter sentence, drawing parallels with Wang’s five-year sentence and pointing out Yang’s health issues, including a stomach cancer diagnosis. However, the court maintained that Yang’s responsibility and the scheme’s scale warranted a harsher punishment. If Yang fails to pay the fine, he will face an additional 40 days in jail.

Escalating Crypto Fraud

Yang’s case is the latest in a series of high-profile cryptocurrency frauds in Asia. In a similar vein is the Indian Enforcement Directorate’s arrest of Shailesh Babulal Bhatt for kidnapping and extortion related to the BitConnect crypto scam. Bhatt, who lost his investment in BitConnect’s fraudulent scheme, resorted to criminal means to recover his funds, demonstrating the desperate lengths to which victims of crypto scams might go. Additionally, the arrest of Linus Williams, a self-proclaimed Nigerian crypto billionaire, on charges of fraud and terrorism funding, reflects the growing regulatory challenges in the crypto space across different jurisdictions.