A&A Blockchain Innovation, founded by Yang Bin—once China’s second-richest man—raised S$6.7 million from over 700 Singaporean investors.
Singapore CTO Jailed for Five Years Over Crypto Ponzi Scheme
Wang Xinghong, the Chief Technology Officer of a cryptocurrency firm that defrauded Singaporean investors, was sentenced to five years in prison on Tuesday (Aug 6). Wang, a 40-year-old Chinese national, admitted to six charges of conspiring to commit fraud, with an additional seven charges considered during sentencing.
The case involved A&A Blockchain Innovation, a company that attracted S$6.7 million from over 700 investors under a fraudulent scheme. The company, founded by Yang Bin—once listed by Forbes as China’s second-richest man—promised investors daily returns of 0.5% through a purported cryptocurrency mining operation.
A&A Blockchain Innovation falsely claimed to have acquired 70% ownership of 300,000 mining machines in Yunnan, China, which were supposedly used to mine Bitcoin and Ethereum. In reality, the company never engaged in cryptocurrency mining and operated a Ponzi scheme, using new investor funds to pay returns to earlier investors.
Wang, hired by Yang to develop a mining app, knew there was no actual mining taking place and no real returns being generated. He created a centralized software system allowing managers in China to input fake numbers to deceive investors. Wang managed this app and received approximately US$100,000 for his role.
The firm raised about S$6.7 million from investors between May 2021 and February 2022. Although some returns were paid using funds from later investors, Wang did not make any restitution. The police began investigating A&A’s activities in February 2022, leading to charges against Wang and his co-accused, including Yang, who is also detained in Singapore.
Prosecutors sought a prison term of four to five years for Wang, citing the significant financial harm and his crucial role in perpetuating the scheme. Defense lawyers argued for a shorter sentence, claiming Wang was less culpable compared to others and was misled by Yang, who promised him significant business opportunities.