Summary:
- Tycoon Yang Bin, once China’s second-richest man, sentenced to six years in prison in Singapore.
- Yang led a Ponzi scheme under the guise of a crypto investment company, A&A Blockchain Innovation.
- The scheme falsely claimed to own 300,000 cryptocurrency mining machines, attracting over 700 investors.
- Investors were defrauded of more than S$6.7 million (over $5 million) between May 2021 and February 2022.
- Yang was previously involved in China’s textile industry and was appointed by North Korea for economic development in 2002.
Yang Bin, a Chinese-Dutch national and former tycoon once ranked as China’s second-richest man by Forbes, has been sentenced to six years in prison in Singapore and fined S$16,000 (around $12,200) for orchestrating a multi-million-dollar Ponzi scheme. The scheme was disguised as a cryptocurrency investment operation, according to a report from CNA.
Yang founded A&A Blockchain Innovation in April 2021 without holding a valid work permit. The company claimed to own 300,000 cryptocurrency mining machines that could deliver daily returns of 0.5% to investors. However, these machines were entirely fictitious, and Yang used funds from new investors to pay returns to those who had invested earlier.
The fraudulent operation managed to attract over 700 investors between May 2021 and February 2022, resulting in total investments of approximately S$6.7 million (over $5 million). Yang’s company was essentially a money circulation scheme, and to maintain the illusion, he instructed his co-accused, Wang Xinghong, to develop an app that generated fake investment returns.
Before his involvement in the cryptocurrency sector, Yang was active in China’s textile industry. He also gained prominence in 2002 when he was appointed by North Korea to oversee the economic development of the Sinŭiju Special Administrative Region. However, his career took a downturn when Chinese authorities placed him under house arrest for tax evasion in November of the same year.
Yang’s recent conviction serves as a reminder of the potential risks associated with fraudulent schemes in the rapidly evolving world of cryptocurrency. Investors are urged to exercise caution and conduct thorough due diligence before participating in any investment opportunities.
Disclaimer:
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