Four Executives Charged in $1.8 Million Crypto Mining Scam in Singapore

Four foreign nationals were charged in Singapore for a conspiracy to cheat in a cryptocurrency mining investment scheme. Linked to local firm A&A Blockchain Technology Innovation, the accused include Dutch national Yang Bin, 60, chairman, and Chinese nationals Lu Huangbin, 59, CEO, Wang Xinghong, 40, CTO, and Chen Wei, 42, director, according to straitstimes.

Between May 2021 and February 2022, the company promised investors a fixed daily return of 0.5% through a crypto mining investment scheme. They allegedly falsely claimed that the company owned numerous machines to mine cryptocurrency, inducing 12 individuals to invest over $1.8 million.

Additionally, from August 2021 to February 2022, A&A Blockchain operated a cryptocurrency exchange known as AAEX without a license from the Monetary Authority of Singapore.

Each of the four faces 12 counts of conspiracy to cheat and one count of providing payment services without a license. Ten of the 12 cheating charges are amalgamated, potentially doubling the punishment for one incident.

Conviction for cheating could lead to a fine, up to 10 years in jail, or both. Providing payment services without a license could result in up to three years in jail, a fine of up to $125,000, or both.

The cases for Chen, Wang, and Yang are adjourned to Sept 7, while Lu’s pre-trial conference is set for Sept 14.

This incident follows a massive islandwide blitz by Singapore police, one of the largest anti-money laundering operations in the country. Ten people were arrested, and about $1 billion worth of assets were seized, frozen, or prohibited from disposal.

The charges against the A&A Blockchain executives highlight the ongoing efforts to combat fraudulent activities in the crypto space and the stringent regulatory measures enforced in Singapore.

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