A Singaporean man has been sentenced to two years in prison after being convicted of helping to illegally transfer $6.5 million in cryptocurrency, marking another enforcement action in Singapore’s tightening crackdown on crypto crime.
A Singapore court has sentenced Zhang Xinghua, 38, to two years in prison for his role in the illegal transfer of approximately S$8.83 million (US$6.5 million) in cryptocurrency stolen from crypto exchange SafeX, marking the maximum penalty under the country’s Computer Misuse Act.
Zhang was convicted on charges of conspiracy to misuse a computer system and dealing with benefits of criminal conduct. The sentencing, handed down around March 12, 2026, stems from a scheme in which three former employees of software firm King Coder exploited their knowledge of SafeX’s systems after a contract breakdown between King Coder and SafeX’s parent company, DTL Ltd.
Co-conspirator Chen Chong Xin carried out three unauthorized accesses to SafeX’s crypto vaults between June and August 2025. The stolen funds were funneled through the wives’ accounts of those involved, then converted to Bitcoin and USDT before being dispersed across multiple wallets.
How $1.6 Million Was Laundered Through Tornado Cash
Zhang personally laundered over US$1.6 million of the stolen proceeds through Tornado Cash, a crypto coin mixer, across two transactions between July and August 2025. He reportedly profited approximately US$886,000 from his role in the scheme.
The use of Tornado Cash in this case is notable. The privacy protocol has become a focal point in global debates over crypto privacy tools and law enforcement, and Singapore prosecutors successfully used evidence of Tornado Cash transactions to secure the conviction.
Singapore authorities managed to seize or freeze approximately US$2.1 million in crypto assets linked to the case. However, roughly US$4.8 million remains unreachable, locked in private wallets and held by overseas virtual asset service providers.
According to a single source, Zhang made restitution of approximately US$95,000 in Bitcoin through his wife’s Binance account, though this claim has not been confirmed across multiple outlets.
Singapore’s Escalating Crackdown on Crypto Crime
The two-year sentence represents the maximum penalty under Singapore’s Computer Misuse Act for causing unauthorized access to a computer system. The decision to impose the harshest available sentence signals Singapore’s intent to deter crypto-related cybercrime.
Singapore prosecutes crypto asset laundering under the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act, while crypto exchanges operate under the Payment Services Act 2019 overseen by the Monetary Authority of Singapore (MAS). The country’s Cybercrime Command, a unit within the Singapore Police Force, handles digital asset crime investigations.
This sentencing follows Singapore’s landmark 2023 money laundering bust involving S$3 billion in assets, which included substantial crypto holdings and resulted in multiple convictions with sentences ranging up to 17 months. The Zhang case, while smaller in scale, carries a heavier individual sentence and underscores that Singapore will pursue maximum penalties even for participants who served as facilitators rather than masterminds.
The enforcement posture aligns with a broader regional trend. Jurisdictions across Asia-Pacific, including Hong Kong and Thailand, have simultaneously tightened oversight of digital asset operations, reflecting coordinated pressure from the Financial Action Task Force (FATF) on major financial centers to maintain anti-money laundering standards.
Co-Conspirator Still at Large
Chen Chong Xin, the co-conspirator who directly accessed SafeX’s crypto vaults, remains at large. According to unconfirmed reports, a third suspect beyond Zhang and Chen is also under investigation, though the extent of that inquiry has not been verified across multiple sources.
There is a discrepancy among reporting outlets regarding Zhang’s nationality. The original report described him as a “Singaporean man,” while other outlets including Decrypt identified him as a “Chinese national” residing in Singapore. The authoritative sources, Singapore’s Straits Times and Chinese-language Lianhe Zaobao, are behind paywalls and could not be independently accessed.
Singapore’s regulatory trajectory points toward even stricter enforcement ahead. MAS continues to expand crypto oversight through amendments to the Payment Services Act, and many crypto firms in the country still operate under provisional exemption status rather than full licenses. The ongoing volatility in crypto markets adds urgency to Singapore’s push to establish clear legal boundaries for digital asset operations in the region.
With US$4.8 million from the SafeX theft still unrecovered and at least one suspect evading authorities, the case remains open, and further sentencings linked to the same scheme are expected.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
