Financial Crime World

COURT DISMISSES BAIL APPLICATION IN CRYPTOCURRENCY FRAUD CASE

A Windhoek magistrate has denied bail to Haifeng Zheng, the alleged mastermind behind a massive cryptocurrency scam that involved approximately 80 Namibians.

Background

Zheng had offered to pay N$100,000 and adhere to any bail conditions set by the court. However, his application was refused citing concerns over public safety and administration of justice.

Charges Against Zheng

Zheng is facing 98 counts of:

  • Human trafficking
  • Fraud
  • Money laundering
  • Racketeering
  • Failure to pay tax
  • Contraventions of Namibia’s immigration laws

The State objected to bail on grounds of the seriousness of the offences, fear of abscondment, and fear of interference with the investigation and witnesses if Zheng was released.

Reasons for Denying Bail

Magistrate Monica Andjaba cited several reasons for denying Zheng bail, including:

  • His dishonesty in claiming he did not work for Raylon Investment, despite admitting to being employed by the company as a team leader
  • Concerns that Zheng would flee the country and not stand trial due to his dual passports of China and Vanuatu
  • The risk of abscondment due to Zheng’s unlawful presence in Namibia and the ease with which he could leave the country

Additional Concerns

Andjaba also highlighted concerns about the possibility of interference with witnesses, although it was unclear how Zheng would interfere or whether the identities of witnesses had been disclosed to him.

Conclusion

The magistrate concluded that Zheng has failed to discharge the onus to prove he is a suitable candidate for bail, citing his lack of roots in Namibia or any African country and the extensive borders of Namibia that make it difficult to police.

Co-Accused

Zheng was arrested along with several co-accused, including:

  • Shi Zi Jun
  • Fan Jia
  • Guo Linjie
  • Tango Muulyau
  • Li Zirian
  • Lin Shu Lin
  • Chen Wuyu
  • Neng Jun Wu
  • Wu Weiyang

Seized Items

Following the arrests, authorities recovered:

  • 163 computers
  • 350 mobile phones
  • Six vehicles
  • 12 firearms
  • Ammunition
  • Cash worth approximately N$19,500

The total amount of the alleged fraud is estimated at US$465,405.56 (approximately N$8.8 million). Most of the accused, except for a few who were granted bail, remain in custody.