Yang Bin admitted to incorporating and running a company that purportedly owned 300,000 machines that could mine cryptocurrency and generate enough revenue to give investors daily returns of 0.5%. The leader behind a multi-million-dollar crypto Ponzi scheme has been sentenced to six years in prison and fined S$16,000 in Singapore. Forbes listed Yang as the second-richest man in China in 2001.
Short Narrative:
Yang Bin, a 61-year-old Dutch national, was sentenced for orchestrating a fraudulent cryptocurrency investment scheme under his company, A&A Blockchain Innovation. The scheme falsely promised investors daily returns from a non-existent cryptocurrency mining operation, deceiving over 700 investors into contributing about S$6.7 million. Yang used funds from new investors to pay returns to earlier ones, a classic Ponzi scheme tactic. Despite generating S$1.8 million from 12 victims, S$1.1 million was lost, with no restitution made.
Key Details:
- Scheme Details: Investors were promised a daily return of 0.5% from fake crypto mining operations.
- Company Operations: A&A falsely claimed ownership of 300,000 mining machines and used fabricated marketing materials to lure investors.
- App Scam: The company developed an app to show fake returns by inputting random figures, misleading investors about the scheme’s profitability.
- Legal Outcome: Yang pleaded guilty to charges of conspiracy to cheat, working without a valid work pass, and hiring employees without valid work passes. His co-accused, Wang Xinghong, received a five-year sentence earlier. Also charged is Lu Huangbin, the CEO of A&A‘s CEO.
Actionable Insight:
Yang Bin‘s case highlights the importance of due diligence in cryptocurrency investments and the ongoing risks of Ponzi schemes in the cyber finance space. Regulatory bodies and investors must remain vigilant against fraudulent schemes that exploit emerging technologies.
Read More: read more about the Yang Bin case.
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