Cryptocurrency scam ‘mastermind’ denied bail
Windhoek magistrate Monica Andjaba on Tuesday dismissed a bail application lodged by the alleged mastermind behind the cryptocurrency scam that involved about 80 Namibians.
Andjaba says it would not be in the public or administration of justice's interest to release Haifeng Zheng on bail.
Zheng offered to pay N$100 000, and adhere to any bail conditions the court might set.
He rushed out of court moments after the ruling was delivered, while his wife and co-accused Shi Zi Jun was seen crying uncontrollably outside the courtroom.
The State objected to bail on the strength of its case, the seriousness of the offences, fear of abscondment and fear of interference with the investigation and witnesses if the applicant is released on bail.
Zheng is facing 98 counts of human trafficking, one count of fraud, one count of money laundering, one count of racketeering, and one count of failure to pay tax.
He is also charged with contravening the immigration law by overstaying in Namibia, working in Namibia without a permit, and entering Namibia without a permit.
Andjaba further said Zheng was dishonest when he claimed he did not work for Raylon Investment, while he, in an affidavit submitted to court during a previous bail application, admitted he was employed at the company as a team leader.
The magistrate said there is a real possibility he would flee and not stand his trial, as he is a dual passport holder with passports of China and Vanuatu.
Further, Andjaba stated that Zheng is unlawfully in Namibia, and to release him on bail, hence expecting him to remain in Namibia, under those circumstances, would further contravene the immigration laws of the country.
According to Andjaba, although evidence was led by the prosecution that interference with witnesses was a strong possibility, it was not informed how the applicant was likely to interfere – whether the identities of the witnesses were disclosed to the applicant.
However, she said, the courts are afforded wider powers to refuse bail even if there was just a reasonable possibility of interference with the investigations or witnesses. Andjaba furthermore reasoned that Zheng has no real roots in Namibia or any African country, and the borders of Namibia are extensive, vast and difficult to police, which constitutes a real risk of abscondment.
“The applicant has failed to discharge the onus to prove that he is a suitable candidate for bail,” the magistrate stated.
Zheng, together with Jun, Fan Jia, Guo Linjie, Tango Muulyau, Haifeng Zheng, Li Zirian, Lin Shu Lin, Chen Wuyu, Neng Jun Wu, Wu Weiyang, Chen You Yi, Carlos Alejandro Batista Valdes, Toivo Herman and Ghim Hwee Chris Ang, are charged with harbouring students and forcing them to create false cryptocurrency profiles, with threats to their families.
Following the arrests, 163 computers, 350 mobile phones, six vehicles, 12 firearms, ammunition and cash in the amount of N$19 500 were recovered.
The total amount of the alleged fraud amounts to US$465 405.56 [approximately N$8.8 million].
All accused, except Tango Muulyau, Shi Zi Jun, Lin Shu Lin, Chen You Yi and Carlos Alejandro remain in custody.
Zheng was represented in the bail application by Gilroy Kasper, assisted by Kadhila Amoomo, and the State by Basson Lilungwe.