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China’s ex-convict jailed six years in Singapore for S$6.7M crypto scam

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SINGAPORE: Yang Bin (杨斌), a Jiangsu-born Dutch national and once China’s second-richest man, was sentenced to six years in prison and fined S$16,000 (US$12,284) on Monday (26 August) for orchestrating a multi-million-dollar Ponzi scheme disguised as a cryptocurrency investment opportunity.

The 61-year-old appeared before Singapore’s state court, where he admitted to operating a fraudulent company that falsely claimed to own 300,000 cryptocurrency mining machines in China.

These machines were purportedly capable of generating enough revenue to provide investors with daily returns of 0.5 percent.

In reality, Yang’s company had no such assets, and the scheme relied on funds from new investors to pay returns to earlier ones.

Yang, who was listed by Forbes as China’s second-richest person in 2001, pleaded guilty to eight charges, including conspiring to cheat, operating without a valid work pass, and employing an individual without a valid work pass.

An additional 11 charges were considered during his sentencing.

Yang’s fraud scheme: How he deceived over 700 investors in Singapore, raising S$6.7 million

After arriving in Singapore on a social visit pass, Yang incorporated A&A Blockchain Innovation on April 20, 2021, and appointed himself as chairman.

Despite lacking a legitimate work pass, Yang ran the company and hired several key figures, including Lu Huangbin (陆煌斌) as CEO, Chen Wei (陈伟) as his personal assistant and a director, and Wang Xinghong (王兴鸿) as chief technological officer.

All three reported directly to Yang, who maintained sole control over the company’s funds.

Yang directed Chen to collect cash from investors, which he then used for personal expenses.

Between May 2021 and February 2022, A&A Blockchain Innovation marketed its “Chain Mining Scheme” to Singaporean investors, promising them fixed daily returns of 0.5 percent from cryptocurrency mining.

The company claimed to have acquired a 70 percent stake in 300,000 mining machines located in Yunnan, China, through an agreement with Yunnan Shun Ai Yun Xun Investment Holdings.

However, this agreement never existed, and the mining machines were a fabrication.

Deputy Public Prosecutor Wong Shiau Yin explained that Yang sought to create a “veneer of legitimacy” by producing marketing materials, including presentation slides and videos, to deceive investors.

Lu was tasked with marketing the scheme to attract investors, while Wang developed an application that allowed investors to purportedly buy tokens and monitor their returns.

The app, however, was a centralized platform where system managers could input random figures to display fake returns.

The Ponzi scheme attracted over 700 investors, who collectively invested approximately S$6.7 million.

Yang’s charges involved S$1.8 million from 12 victims, with a net loss of around S$1.1 million after accounting for returns some investors had received. Yang did not make any restitution to the victims.

Yang was arrested on 16 August 2023, and authorities seized S$100,000 from his residence, which he admitted belonged to investors in the scheme.

Of Yang’s co-accused, only Wang Xinghong has been sentenced, receiving a five-year prison term on 6 August for his role in the scheme. The cases against Lu and Chen are still pending.

Question arise how Yang incorporated and run his firm in Singapore despite high-profile case in China

Born in Nanjing in 1963, Yang Bin emigrated to the Netherlands in 1987, where he ran a textile business and became a naturalized Dutch citizen.

In 1995, he returned to China and established an orchid business in Shenyang, boasting “modern horticultural techniques” he had learned in the Netherlands.

Chinese media described Yang as known for his “barehanded white wolf” (空手套白狼) tactics, successfully persuading the local government in Shenyang to grant him various benefits, including tax relief, to develop a ‘Holland Village’ in the province.

At his peak, he amassed an estimated 6.5 billion RMB (approximately US$850 million). In 2001, Forbes listed Yang as the second-richest person in China.

However, by the end of that year, suspicions about his financial practices began to surface.

Reports questioned the rapid growth of his wealth and the legitimacy of Eurasia’s transactions. By 2002, his financial stability started to unravel as he faced mounting debt and financial difficulties.

In September 2002, North Korea appointed Yang to lead the economic development of the Sinŭiju Special Administrative Region (SAR), an ambitious plan by then-leader Kim Jong-il to create a Hong Kong-like special economic zone to spur growth.

At the time, Yang even claimed in front of the media that he was the “Kim Jong-il’s adopted son.”

However, shortly after his appointment, Chinese authorities placed him under house arrest on October 4.

He was formally arrested in November on charges of tax evasion, illegal land use, and financial misconduct. In July 2003, Yang was sentenced to 18 years in prison and fined 2.3 million RMB.

In September 2016, Yang was released on parole, four years earlier than scheduled.

After losing hope in the revival of North Korea’s Sinŭiju SAR project, Yang turned his attention to cryptocurrency.

In 2021, he promoted the ‘Marscoin’ blockchain project in China, boasting about his status as a “former top billionaire in China.”

In March 2021, he came to Singapore and established the “Chinese Business Philanthropy Foundation” and subsequently founded AA Blockchain in April.

However, questions have arisen regarding how Yang, a high-profile former convict in China for his previous case, was able to set up a company in Singapore with just a social pass, while promoting a Ponzi scheme.

The post China’s ex-convict jailed six years in Singapore for S$6.7M crypto scam appeared first on Gutzy Asia.

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Reforming Singapore’s defamation laws: Preventing legal weapons against free speech

Opinion: The tragic suicide of Geno Ong, linked to the financial stress from a defamation lawsuit, raises a critical issue: Singapore’s defamation laws need reform. These laws must not be weaponized to silence individuals.

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by Alexandar Chia

This week, we hear the tragic story of the suicide of Geno Ong, with Ong citing the financial stress from the defamation lawsuit against her by Raymond Ng and Iris Koh.

Regardless of who’s right and who’s wrong, this Koh/Ng vs Ong affair raises a wider question at play – the issue of Singapore’s defamation laws and how it needs to be tightened.

Why is this needed? This is because defamation suits cannot be weaponised the way they have been in Singapore law. It cannot be used to threaten people into “shutting up”.

Article 14(2)(a) of the Constitution may permit laws to be passed to restrict free speech in the area of defamation, but it does not remove the fact that Article 14(1)(a) is still law, and it permits freedom of speech.

As such, although Article 14(2)(a) allows restrictions to be placed on freedom of speech with regard to the issue of defamation, it must not be to the extent where Article 14(1)(a)’s rights and liberties are not curtailed completely or heavily infringed on.

Sadly, that is the case with regard to precedence in defamation suits.

Let’s have a look at the defamation suit then-PM Goh Chok Tong filed against Dr Chee Soon Juan after GE 2001 for questions Dr Chee asked publicly about a $17 billion loan made to Suharto.

If we look at point 12 of the above link, in the “lawyer’s letter” sent to Dr Chee, Goh’s case of himself being defamed centred on lines Dr Chee used in his question, such as “you can run but you can’t hide”, and “did he not tell you about the $17 billion loan”?

In the West, such lines of questioning are easily understood at worse as hyperbolically figurative expressions with the gist of the meaning behind such questioning on why the loan to Suharto was made.

Unfortunately, Singapore’s defamation laws saw Dr Chee’s actions of imputing ill motives on Goh, when in the West, it is expected of incumbents to take the kind of questions Dr Chee asked, and such questions asked of incumbent office holders are not uncommon.

And the law permits pretty flimsy reasons such as “withdrawal of allegations” to be used as a deciding factor if a statement is defamatory or not – this is as per points 66-69 of the judgement.

This is not to imply or impute ill intent on Singapore courts. Rather, it shows how defamation laws in Singapore needs to be tightened, to ensure that a possible future scenario where it is weaponised as a “shut-up tool”, occurs.

These are how I suggest it is to be done –

  1. The law has to make mandatory, that for a case to go into a full lawsuit, there has to be a 3-round exchange of talking points and two attempts at legal mediation.
  2. Summary judgment should be banned from defamation suits, unless if one party fails to adduce evidence or a defence.
  3. A statement is to be proven false, hence, defamatory, if there is strictly material along with circumstantial evidence showing that the statement is false. Apologies and related should not be used as main determinants, given how many of these statements are made in the heat of the moment, from the natural feelings of threat and intimidation from a defamation suit.
  4. A question should only be considered defamatory if it has been repeated, after material facts of evidence are produced showing, beyond reasonable doubt, that the message behind the question, is “not so”, and if there is a directly mentioned subject in the question. For example, if an Opposition MP, Mr A, was found to be poisoned with a banned substance, and I ask openly on how Mr A got access to that substance, given that its banned, I can’t be found to have “defamed the government” with the question as 1) the government was not mentioned directly and 2) if the government has not produced material evidence that they indeed had no role in the poisoning affair, if they were directly mentioned.
  5. Damages should be tiered, with these tiers coded into the Defamation Act – the highest quantum of damages (i.e. those of a six-figured nature) is only to be reserved if the subject of defamation lost any form of office, revenue or position, or directly quantifiable public standing, or was subjected to criminal action, because of the act of defamation. If none of such occur, the maximum amount of damages a plaintiff in a defamation can claim is a 4-figure amount capped at $2000. This will prevent rich and powerful figures from using defamation suits and 6-figure damages to intimidate their questioners and detractors.
  6. All defendants of defamation suit should be allowed full access to legal aid schemes.

Again, this piece does not suggest bad-faith malpractice by the courts in Singapore. Rather, it is to suggest how to tighten up defamation laws to avoid it being used as the silencing hatchet.

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Man arrested for alleged housebreaking and theft of mobile phones in Yishun

A 23-year-old man was arrested for allegedly breaking into a Yishun Ring Road rental flat and stealing eight mobile phones worth S$3,400 from five tenants. The Singapore Police responded swiftly on 1 September, identifying and apprehending the suspect on the same day. The man has been charged with housebreaking, which carries a potential 10-year jail term.

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SINGAPORE: A 23-year-old man has been arrested for allegedly breaking into a rental flat along Yishun Ring Road and stealing eight mobile phones from five tenants.

The incident occurred in the early hours on Sunday (1 September), according to a statement from the Singapore Police Force.

The authorities reported that they received a call for assistance at around 5 a.m. on that day.

Officers from the Woodlands Police Division quickly responded and, through ground enquiries and police camera footage, were able to identify and apprehend the suspect on the same day.

The stolen mobile phones, with an estimated total value of approximately S$3,400, were recovered hidden under a nearby bin.

The suspect was charged in court on Monday with housebreaking with the intent to commit theft.

If convicted, he could face a jail term of up to 10 years and a fine.

In light of this incident, the police have advised property owners to take precautions to prevent similar crimes.

They recommend securing all doors, windows, and other openings with good quality grilles and padlocks when leaving premises unattended, even for short periods.

The installation of burglar alarms, motion sensor lights, and CCTV cameras to cover access points is also advised. Additionally, residents are urged to avoid keeping large sums of cash and valuables in their homes.

The investigation is ongoing.

Last month, police disclosed that a recent uptick in housebreaking incidents in private residential estates across Singapore has been traced to foreign syndicates, primarily involving Chinese nationals.

Preliminary investigations indicate that these syndicates operate in small groups, targeting homes by scaling perimeter walls or fences.

The suspects are believed to be transient travelers who enter Singapore on Social Visit Passes, typically just a day or two before committing the crimes.

Before this recent surge in break-ins, housebreaking cases were on the decline, with 59 reported in the first half of this year compared to 70 during the same period last year.

However, between 1 June and 4 August 2024, there were 10 reported housebreaking incidents, predominantly in private estates around the Rail Corridor and Bukit Timah Road.

The SPF has intensified efforts to engage residents near high-risk areas by distributing crime prevention advisories, erecting alert signs, and training them to patrol their neighborhoods, leading to an increase in reports of suspicious activity.

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