Singapore – A conspiracy to steal over US$6.9 million (S$8.8 million) worth of cryptocurrency from the SafeX Virtual Asset Exchange has resulted in the sentencing of one man and ongoing investigations into two others. Zhang Xinghua, 38, was sentenced to two years in jail on March 11 after pleading guilty to conspiracy to misuse a computer system and dealing with the benefits of criminal conduct.
Details of the Scheme
According to court documents, Zhang, along with Singaporean Dai Yong, 36, and Singapore permanent resident Chen Chong Xin, 36, previously worked for a company called King Coder, which managed platforms for SafeX’s operator, DLT. Following a dispute with DLT’s director in or before May 2025, the three men planned to start a competing trading platform and allegedly sought funds from SafeX to finance their venture.
Chen allegedly accessed SafeX’s cryptocurrency vaults on three occasions between June and August 2025, transferring over US$6.9 million to various wallets. Zhang provided details of his wife’s Binance account to receive a portion of the stolen funds, but Chen cautioned that this method could be easily traced. Zhang then researched and utilized a cryptocurrency mixer, Tornado Cash, depositing over US$1.1 million in July 2025 and an additional US$523,000 the following month, in an attempt to obscure the funds’ origins.
The theft was discovered on August 13, 2025, when SafeX’s system triggered an alarm indicating low vault balances – less than US$50,000. A police report was filed on August 22, 2025, leading to Zhang’s arrest four days later.
The Singapore Police Force has, to date, seized and/or frozen approximately US$2.1 million worth of cryptocurrencies related to the theft. But, around US$4.8 million remains unrecoverable, held in private wallets and with virtual asset service providers outside of Singapore’s jurisdiction.
What Happens Next?
Dai Yong’s case is currently pending, and Chen Chong Xin remains at large. Authorities will continue to pursue the recovery of the remaining US$4.8 million in stolen cryptocurrency. Further investigation could also reveal additional details about the planning and execution of the scheme, and potentially identify other individuals involved.
Frequently Asked Questions
What was Zhang Xinghua’s role in the theft?
Zhang Xinghua laundered a portion of the stolen cryptocurrencies by using a cryptocurrency mixer, and provided details of his wife’s Binance account to receive some of the funds.
How much cryptocurrency has been recovered?
To date, the Singapore Police Force has seized and/or frozen about US$2.1 million worth of cryptocurrencies.
What happened to the remaining stolen funds?
Around US$4.8 million in cryptocurrencies remains beyond the reach of authorities, as We see held in private wallets and with virtual asset service providers located outside of Singapore’s jurisdiction.
As cryptocurrency crimes turn into more sophisticated, what measures can exchanges and individuals take to better protect their digital assets?
