Once China’s second-richest man was sentenced to six years in prison in Singapore for orchestrating a fraudulent crypto investment scheme.

Tycoon Yang Bin, a Chinese-Dutch national and the second-richest man in China by Forbes for 2001, was sentenced to six years in prison in Singapore and fined S$16,000 (around $12,200) on Monday, Aug. 26 for leading a multi-million-dollar Ponzi scheme masquerading as a crypto investment operation, per a report from CNA.

Yang, who founded A&A Blockchain Innovation in April 2021 without a valid work permit, falsely claimed the company owned 300,000 cryptocurrency mining machines capable of delivering daily returns of 0.5% to investors. In reality, however, these machines did not exist, and Yang utilized funds from new investors to pay for the earlier ones.

The scheme, which promised investors returns from mining cryptocurrencies, reportedly attracted over 700 participants who invested about S$6.7 million (over $5 million) between May 2021 and February 2022. Yang’s company operated a money circulation scheme, and he instructed co-accused Wang Xinghong to develop an app that faked investment returns.

Yang pleaded guilty to eight charges, including conspiracy to cheat and operating without a valid work permit. Deputy public prosecutor Wong Shiau Yin emphasized Yang’s pivotal role in the scheme and the lack of restitution for victims. District Judge Brenda Chua highlighted Yang’s significant culpability compared to his co-accused, whose legal proceedings are ongoing.

Yang, who was previously involved in the textile industry in China, was also appointed by North Korea in 2002 to oversee the economic development of the Sinŭiju Special Administrative Region. However, he was soon placed under house arrest by Chinese authorities on tax evasion charges in November of that year.