Ex-2nd richest in China gets six years for $5 million crypto fraud

Once ranked as China’s second-richest man, Yang Bin has been sentenced to six years in prison in Singapore for his role in a fraudulent crypto investment scheme.

Yang, a Chinese-Dutch national, was listed by Forbes as the second-richest man in China in 2001.

He was sentenced on August 26, receiving a prison term and a fine of S$16,000 (approximately $12,200), according to a report from CNA.

The charges stem from Yang’s leadership in a multi-million-dollar Ponzi scheme that disguised itself as a legitimate crypto investment opportunity.

In April 2021, Yang founded AA Blockchain Innovation without obtaining a valid work permit, a move that would later become central to the charges against him.

Yang falsely claimed that his company owned 300,000 cryptocurrency mining machines, which he said could generate daily returns of 0.5% for investors.

In reality, these mining machines did not exist, and Yang was using funds from new investors to pay earlier ones, a classic Ponzi scheme operation.

The fraudulent scheme attracted over 700 participants, who invested more than S$6.7 million (over $5 million) between May 2021 and February 2022.

Yang’s company operated what is known as a money circulation scheme, misleading investors about the true nature of their returns.

To further deceive investors, Yang instructed his co-accused, Wang Xinghong, to develop an app that fabricated investment returns, making the scheme appear legitimate.

Yang pleaded guilty to eight charges, including conspiracy to cheat and operating a business without a valid work permit.

During the trial, Deputy Public Prosecutor Wong Shiau Yin emphasised Yang’s central role in orchestrating the fraud and noted the lack of restitution for the victims.

District Judge Brenda Chua underscored Yang’s significant culpability, noting that his involvement was more severe compared to his co-accused, whose cases are still pending.

Yang’s past includes a notable role in the textile industry in China and a controversial appointment by North Korea in 2002 to lead the development of the Sinuiju Special Administrative Region.

However, his involvement in North Korea was short-lived, as Chinese authorities placed him under house arrest in November 2002 on charges of tax evasion.

Yang’s downfall serves as a stark reminder of the risks associated with unregulated and fraudulent crypto schemes, which continue to ensnare unsuspecting investors.

The case also highlights the international reach of financial crime enforcement, with Yang facing justice in Singapore despite his prominence and past wealth in China.

The legal proceedings for Yang's co-accused are ongoing.