Singapore Court Sentences Man in $8.8M SafeX Crypto Heist Case

• Insider knowledge enabled a $6.9M crypto theft targeting the SafeX trading platform.
• Authorities froze $2.1M, yet $4.8M remains overseas, complicating recovery efforts.
• Laundering through mixers highlighted sophisticated tactics to conceal stolen crypto.

A Singapore court sentenced a Chinese national to two years in jail for his role in a cryptocurrency theft that drained millions from a trading platform. The case highlights rising cybercrime risks facing digital asset exchanges. Authorities uncovered a coordinated scheme involving three former technology workers who targeted their previous employer’s crypto infrastructure. 

Investigators said the group exploited insider knowledge and attempted to conceal the stolen assets through laundering tactics. The theft involved cryptocurrencies worth more than $6.9 million, equivalent to about $8.8 million in Singapore dollars.

Zhang Xinghua, aged 38, admitted his role in the scheme and accepted responsibility for participating in computer misuse and handling criminal proceeds. Consequently, the court imposed a custodial sentence after reviewing the scale of the crime and the laundering attempts. 

The investigation also revealed that Zhang processed part of the stolen assets through a cryptocurrency mixer. This service blends digital assets from many users to obscure transaction origins and ownership trails.

Authorities reported that police intervention prevented Zhang from securing the full share of illicit gains. Investigators estimated that he could have obtained over $886,000 in cryptocurrency without the early disruption.

Insider Knowledge Played Key Role

The conspiracy developed after the three men worked at a company named King Coder. The firm managed technical systems and operational accounts connected to the SafeX Virtual Asset Exchange platform. However, disputes later damaged the relationship between the employees and the platform’s leadership.

Tensions escalated during early 2025. Consequently, the three workers left their roles and began planning a competing trading platform. Moreover, they met several times to discuss funding options for their proposed venture. During those discussions, one conspirator proposed extracting funds directly from SafeX.

Despite doubts, the other two participants supported the plan. Personal grievances influenced their decision and strengthened their willingness to proceed. Additionally, the group relied on internal technical knowledge obtained during their employment.

None of the conspirators held authorization to access SafeX cryptocurrency vaults. Nevertheless, they pursued the scheme and eventually moved stolen assets across several wallets.

One of Zhang’s alleged accomplices, Singaporean Dai Yong, 36, is facing separate legal proceedings, with his case still pending before the courts. Court filings also identified a third participant, Chen Chong Xin, 36, a Singapore permanent resident who remains at large. Authorities continue efforts to locate him.

Recovery Efforts Continue

Law enforcement agencies managed to trace and freeze part of the stolen digital assets. The Singapore Police Force has seized or frozen roughly $2.1 million worth of cryptocurrency connected to the case. However, investigators still face difficulties recovering the remaining funds.

Significantly, authorities reported that about $4.8 million remains outside Singapore’s reach. These assets sit in private wallets and accounts operated by overseas virtual asset service providers. Jurisdictional barriers complicate the recovery process and slow asset tracing efforts.

Meanwhile, Zhang attempted to return part of the stolen funds. Through his wife, he transferred 0.890262 bitcoin to a wallet controlled by SafeX’s operator. The repayment equaled more than $95,000 at the time of restitution.

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