China’s Second Richest Man Imprisoned for Cryptocurrency Fraud

Yang Bin, a Dutch-Chinese tycoon who was ranked as the second richest person in China by Forbes in 2001, was sentenced to six years in prison and fined 16,000 Singapore dollars (approximately 12,200 USD) on Monday, August 26. His conviction stemmed from leading a multi-million dollar Ponzi scheme disguised as a cryptocurrency investment operation, according to a CNA report.

Yang, who founded A&A Blockchain Innovation in April 2021 without a valid work permit, falsely claimed that the company owned 300,000 cryptocurrency mining machines capable of generating a daily return of 0.5% for investors. In reality, these machines never existed, and Yang used funds from new investors to pay returns to earlier ones.

This scheme promised profits to investors through cryptocurrency mining, reportedly drawing in over 700 participants who invested around 6.7 million Singapore dollars (over 5 million USD) between May 2021 and February 2022. Yang’s company operated a money circulation scheme, and he directed his accomplice, Wang Xinghong, to develop an app that fabricated investment returns.

Yang pleaded guilty to eight charges, including conspiracy to defraud and operating without a valid work permit. Deputy Public Prosecutor Wong Shiau Yin emphasized Yang’s central role in the scheme and the lack of restitution for the victims. District Judge Brenda Chua highlighted Yang’s significant culpability compared to his co-accused, who are still undergoing legal proceedings.

Previously involved in the textile industry in China, Yang was appointed by North Korea in 2002 to oversee the economic development of the Sinŭiju Special Administrative Region. However, he was placed under house arrest by Chinese authorities for tax evasion in November of that year.