Former Chinese Tycoon Yang Bin Sentenced to Six Years in Singapore for Leading a Multi-Million Dollar Crypto Ponzi Scheme

Former Chinese Tycoon Yang Bin Sentenced to Six Years in Singapore for Leading a Multi-Million Dollar Crypto Ponzi Scheme
Image credit: Business Insider India

Yang Bin, a Chinese-Dutch national and once the second richest man in China, has been sentenced to six years in prison by a Singapore court for orchestrating a multi-million dollar Ponzi scheme under the guise of a crypto investment operation.

Yang, who was ranked as China’s second wealthiest person by Forbes in 2001, was also fined $12,200 during the sentencing on August 26, 2024.

The Fraudulent Ponzi Scheme

In April 2021, Yang founded A$A Blockchain Innovation, a company that falsely claimed to possess over 300,000 cryptocurrency mining machines. He promised investors a 0.5% daily return on their investments, luring over 700 investors to contribute more than $5 million between May 2021 and February 2022. 

However, the reality was far different; there were no mining machines, and Yang used the funds from newer investors to pay returns to older investors, a classic Ponzi scheme tactic. To further deceive his investors, Yang even developed an app that simulated investment returns, making the operation appear legitimate.

Sentencing and Legal Proceedings

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

During the court proceedings, Deputy Public Prosecutor Wong Shiau Yin emphasized Yang’s central role in the scheme and noted the absence of restitution for the victims. District Judge Brenda Chua also highlighted Yang’s significant culpability compared to his co-accused, whose legal proceedings are still ongoing.

Yang Bin’s Fall from Grace

Born in 1963, Yang Bin was once a prominent figure in China, with Forbes listing him as the country’s second richest man in 2001. He initially made his fortune in the horticulture and real estate industries, owning assets in Euro-Asia Agricultural Holdings and Holland Village, China. 

Yang’s fortunes began to decline in 2002 when he was arrested on charges of tax evasion, leading to an 18-year prison sentence in 2003. He was released in 2016. His recent involvement in the fraudulent crypto investment scheme marks another significant downfall in his career, following his earlier fall from grace.