Four Foreign Nationals Charged in $1.8 Million Cryptocurrency Mining Scam Case

Legal proceedings were initiated on Thursday against four foreign individuals accused of colluding in a conspiracy to defraud within a cryptocurrency mining investment scheme. These individuals also face charges for operating an unlicensed payment services business.

The defendants are associated with the local company A&A Blockchain Technology Innovation, which had been under investigation in 2022 due to suspicions of fraudulent activities.

At the time of the alleged offenses, Yang Bin, a 60-year-old Dutch national, held the position of chairman at A&A Blockchain. Lu Huangbin, 59, served as the company’s CEO, Wang Xinghong, 40, as the chief technology officer, and Chen Wei, 42, as a director. Lu, Wang, and Chen are citizens of China.

Each of the accused is confronted with 12 counts related to participating in a conspiracy to defraud, involving a cumulative sum exceeding $1.8 million. Additionally, they face a single charge for permitting A&A Blockchain to operate a payment services business without the necessary license.

Between May 2021 and February 2022, A&A Blockchain presented an investment scheme for cryptocurrency mining, promising investors a fixed daily return of 0.5 percent. The defendants purportedly conspired to attract 12 individuals to invest with A&A Blockchain by making false claims that the company possessed a substantial number of cryptocurrency mining machines.

From August 2021 to February 2022, A&A Blockchain operated a cryptocurrency exchange named AAEX, which facilitated the trading of multiple cryptocurrencies. However, the company was not licensed by the Monetary Authority of Singapore to offer payment services in the country.

According to the Penal Code, individuals convicted of fraud-related offenses may face fines, imprisonment for up to 10 years, or both.

Out of the 12 charges related to fraud, 10 are consolidated charges. If found guilty of such a charge, the accused could be subject to double the punishment typically assigned to a single offense.

Additionally, individuals convicted of providing payment services without a license could potentially receive a prison sentence of up to three years, a fine of up to $125,000, or both.

The cases involving Chen, Wang, and Yang have been postponed to September 7. Lu’s pre-trial conference is scheduled for September 14.

Earlier this week, Singaporean law enforcement executed a widespread operation against money laundering, culminating in the apprehension of foreign individuals who had amassed approximately $1 billion worth of assets. These individuals were residing in high-end residences and owned luxury vehicles.

On Wednesday evening, ten individuals between the ages of 31 and 44 were arrested and charged for suspected involvement in offenses including forgery, money laundering, and resisting arrest. Properties, luxury vehicles, and goods belonging to the individuals were either confiscated, frozen, or subject to disposal prohibitions. This operation represents one of Singapore’s largest anti-money laundering efforts to date.