Singapore Jails Man Over $6.9M SafeX Crypto Theft Case

In brief

A Singapore court has sentenced Zhang Xinghua, 38, to two years in prison over a conspiracy linked to the theft of $6.9 million in crypto from SafeX.
Prosecutors said Zhang used coin mixer Tornado Cash to obfuscate some $1.6 million worth of the proceeds.
Police have seized or frozen about $2.1 million in crypto, while around $4.8 million remains outside Singapore authorities’ reach.

A Singapore court has sentenced Chinese national Zhang Xinghua, 38, to two years in jail after he pleaded guilty to conspiracy to misuse a computer system and dealing with benefits of criminal conduct, in a case involving the theft of approximately $6.9 million (S$8.8 million) from crypto exchange SafeX.

According to reports in local media, Zhang was part of a three-man conspiracy that robbed SafeX following a breakdown in business relations between the firm they worked at, King Coder, and the exchange’s parent company DTL.

Prosecutors said that one member of the trio, Chen Chong Xin, who remains at large, accessed SafeX crypto vaults without authorization on three occasions between June and August 2025, transferring over $6.9 million in crypto to multiple wallets.

Zhang subsequently laundered part of the proceeds through Tornado Cash, a coin mixer used to obscure transaction trails, with court statements noting that he deposited over $1.6 million across two transactions between July and August 2025. Prosecutors added that Zhang would have received more than $886,000 in crypto absent police intervention.

The matter came to light after SafeX systems reportedly triggered a low-balance alarm in August 2025, prompting internal technical checks and a police report. Zhang was arrested days later.

Singapore authorities said they have seized or frozen around $2.1 million in crypto linked to the case. Prosecutors told the court that about $4.8 million remains beyond reach in private wallets and wallets maintained by virtual asset service providers outside Singapore’s jurisdiction.

Court proceedings also stated that Zhang made restitution of around $95,000 in Bitcoin through his wife, after her Binance account was used to receive a portion of the ill-gotten gains.

One alleged accomplice’s case remains pending.

Tornado Cash and crypto mixers

The case highlights the ongoing debate over coin mixers such as Tornado Cash, whose founder Roman Storm was last year found guilty of operating an unlicensed money transmitter. Last week, federal prosecutors requested Storm’s retrial on more serious money-laundering and sanctions evasion charges deadlocked by a jury at his previous trial.

Storm’s predicament comes amid mixed signals out of Washington regarding coin mixers, however. In March 2025, the U.S. Treasury lifted sanctions on Tornado Cash, while this month it issued a report noting that mixers may have legitimate uses to enable financial privacy for lawful users.