Superhacker's arrest raises questions about Singapore

BBefore being arrested this month for allegedly running what is likely the world's largest cybercrime network, Wang YunHe lived a lavish lifestyle in Singapore.

He had a bank account in the city-state, was a director of several local businesses and lived in a multimillion-dollar apartment overlooking a prominent shopping district, according to an indictment and local documents. Meanwhile, the 35-year-old Chinese national amassed wealth by providing cybercriminals with paid access to millions of infected devices, the U.S. Department of Justice said.

The case puts the challenges of controlling the flow of foreign wealth into Singapore in a new light, less than a year after 10 people of Chinese descent were charged in the country's biggest money laundering scandal .

Although Wang is charged with a different set of crimes than the remote gaming ring that was taken down last year, the alleged modus operandi is similar. He established companies in Singapore in which local citizens were directors or company secretaries. In addition to properties amassed in the city-state, Thailand, Dubai and the United States, authorities are also seeking to seize cryptocurrencies, watches and luxury cars.

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The revelations are a reminder of the difficult balancing act facing Singapore and other financial centers as they strive to attract the world's ultra-rich. The move has helped make Singapore a leading wealth management hub, but it has also been accompanied by a series of scandals in recent years, as well as promises from authorities to step up oversight.

Wang was arrested at his home in Singapore on May 24. He is notably accused of conspiracy to commit wire fraud and money laundering, according to the DOJ. If convicted on all counts, Wang faces a maximum sentence of 65 years in prison.

The charges against Wang relate to the alleged deployment of malware and the creation and operation of a residential proxy service known as “911 S5”, a botnet that facilitated cyberattacks, large-scale fraud, child exploitation, harassment, bomb threats and export violations. according to the DOJ.

The Singapore Police Force and Attorney General's Offices have been working with the DOJ and the Federal Bureau of Investigation since August 2022, according to a statement from the city-state's police force. Police launched an operation to arrest Wang, following an extradition request from the United States. The multi-agency effort also included law enforcement in Thailand and Germany, according to the DOJ.

Wang, who is also a citizen of St. Kitts and Nevis, has a work visa in Singapore, according to local records obtained by Bloomberg. His 215 square meter (2,314 square foot) apartment in the Orchard Road area was purchased in his name in 2021 for S$9.36 million ($6.9 million), according to other local records .

Security at Wang's apartment said no one was home on the evening of May 30 in Singapore. Singapore police said they were unable to release further information on the status of Wang's assets as the matter was currently before the courts.

“Based on a screenplay”

“The behavior alleged here feels like something out of a script,” Assistant Secretary for Export Enforcement Matthew S. Axelrod of the department's Bureau of Industry and Security said Wednesday. American Commerce, adding that Wang had splurged with nearly $100 million in winnings. of the criminal enterprise. Today, the United States is going after these assets.

In Singapore, US authorities are seeking possession of the Orchard Road apartment as well as his locally registered 2022 Ferrari F8 Spider.

Wang held a bank account with Citigroup Inc. in Singapore in his name, according to the indictment. In addition, there were accounts with Malaysian CIMB Group Holdings Bhd. denominated in US dollars and Singapore dollars, as well as several bank accounts in Thailand and with a US lender, held either under his name or those of other entities and associates.

Citi declined to comment on the matter through a spokesperson. The lender “is committed to combating any activity that undermines the financial system, and we will extend our cooperation to the authorities,” the spokesperson added. A Singapore-based CIMB spokesperson said the bank does not comment on individuals or ongoing investigations, adding that it is “fully committed to strong corporate governance and strict compliance with banking standards, laws and regulations”.

Wang operated under several aliases, including Jack Wan, Jack Wang and Tom Long, according to the indictment.

One of his now-defunct companies, Eternal Code Pte., was a wholesaler of computer software, according to the Singapore Companies Registry. It hired directors who held positions at dozens of other companies. None of these company officials have been accused of wrongdoing.

He also managed two other companies, whose addresses were located in a prime office complex in the central business district. Its premises were occupied by another company, Leeden Capital Pte., during a recent visit. Two employees affiliated with Leeden said they were not associated with Wang and did not know his whereabouts.

Singapore faced a test of its reputation as a leading financial center last year after the arrests of Chinese-born people accused of using ill-gotten gains from remote gaming businesses to fund gambling schemes. extravagant life. The Monetary Authority of Singapore announced in July that it would strengthen supervision and safeguards against money laundering risks in the family office sector.

Before this affair, Singapore had also been rocked by scandals involving huge financial flows from the Malaysian public fund 1MDB and the German company Wirecard AG. The outbursts led to financiers being banned, people being jailed and banks being fined for poor internal controls.