Watch Out: Former Chinese Tycoon Jailed for Crypto Ponzi Scheme
A former Chinese business magnate, Yang Bin, has been sentenced to six years in a Singapore penitentiary for orchestrating a multi-million-dollar Ponzi scheme disguised as a crypto investment enterprise.
The Conviction
Yang, a 61-year-old Chinese-Dutch citizen, admitted to eight charges, including involvement in a fraudulent plot, working without a valid work visa, and was slapped with a S$16,000 fine on August 26.
- According to reports, Yang operated under the name A&A Blockchain Innovation, enticing over 700 investors who lost about S$1.1 million of the supposed S$6.7 million invested between May 2021 and February 2022.
- The company claimed to possess 300,000 cryptocurrency mining machines promising investors a daily return of 0.5%, but no such machines existed. Yang used new investors’ funds to pay earlier investors, a classic hallmark of a Ponzi scheme.
A Fraudulent Past
This is not Yang’s first brush with the law. In 2003, a Chinese court sentenced him to 18 years for tax evasion, releasing him in 2016 after serving part of his term.
- Yang’s troubles began in 2002 when North Korea appointed him to oversee economic development in a region, leading to his arrest in China on tax evasion allegations.
Sophisticated Deception
Yang’s latest scheme involved an app showcasing fake returns to investors through centralized systems, allowing the manager to input random figures to fabricate real money returns.
- The prosecutor revealed that Yang played a crucial role in the scam and did not compensate the victims. Authorities recovered S$100,000 from his residence, confirmed by Yang as investors’ money.
Behind Bars
District Judge Brenda Chua sentenced Yang to a six-year term, considering his higher culpability compared to his co-accused whose cases are ongoing.
- Yang’s defense successfully argued for a slightly reduced sentence due to his early guilty plea and cooperation with authorities.
- The judge emphasized the substantial sums involved, long-standing grievances of victims, and the absence of restitution, making it a stern warning against unregulated crypto scams.
Lessons Learned
Yang’s conviction serves as a cautionary tale for investors engaging in fraudulent crypto schemes as the industry evolves rapidly. It underscores the importance of vigilance and due diligence before investing in any financial venture today.
Hot Take: Stay Alert Against Crypto Scams
Yang Bin, the former second-richest man in China, has been sentenced to six years in a Singapore prison for operating a multi-million-dollar Ponzi scheme disguised as a crypto investment operation.
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