China’s second richest man, as of 2001, according to a Forbes ranking was jailed in Singapore following a fraudulent crypto investment scheme.
Yang Bin, a Chinese-Dutch National and the second richest man in China in 2001 was sentenced to six years in prison in Singapore and fined a total of $12,200 on Monday, Aug 26 for leading a multi-million dollar Ponzi scheme disguised as a crypto investment operation.
The Ponzi Scheme
Yang founded A$A blockchain innovation in April 2021 and falsely claimed to own over 300,000 cryptocurrency mining machines with the capacity to deliver a 0.5% return to investors.
In reality, there were no mining machines and Yang utilized funds he received from investors to pay older investors in a carefully orchestrated Ponzi scheme.
The Scheme which promised investors returns from cryptocurrency mining attracted over 700 investors who put in over $5 million between May 2021 and February 2022. The company operated a money circulation scheme that paid older clients with money gotten from newer clients.
He even developed an app that faked investment returns to deceive investors that the operation was legitimate.
The Sentencing
In his court sentencing, Yang pleaded guilty to eight charges including conspiracy to cheat and operating without a valid work permit.
Deputy public prosecutor Wong Shiau Yin stressed Yang’s pivotal and important role in the scheme and the lack of restitution for victims.
District Judge Brenda Chua highlighted Yang’s significant culpability compared to his co-accused, whose legal proceedings are ongoing.
Yang was previously involved in the textile industry in China and was once appointed by North Korea to oversee the economic development of the Siniuju Special Administrative Region.
What To Know
- Yang Bin was born in 1963 and is a Chinese-Dutch businessman who was formerly listed as the second richest man in China by Forbes in 2001. He once held assets in the horticulture and real estate industries, owning stakes in the Euro-Asia Agricultural Holdings and Holland Village, China.
- Yan Bin’s fall from grace came in 2002 when he was arrested on charges of tax evasion. In 2003 Yang Bin was sentenced to 18 years in prison. Mr. Yang was released from prison on September 26, 2016.
- Yan Bin’s foray into cryptocurrency is his latest venture where he founded A&A blockchain innovation a crypto investment scheme that turned out to be a fraud. He was able to defraud over 700 clients of $5 million claiming to have 300,000 cryptocurrency mining machines that can deliver a 0.5% return to investors daily.