Jail for ex-SAF captain for breaking into an acquaintance's condominium unit and stealing S$2.3 million in cryptocurrency - Singapore News

SINGAPORE: A former Singapore Armed Forces (SAF) captain has been jailed after carrying out what prosecutors described as a carefully planned cryptocurrency heist against someone he knew personally.

Teo Rong Xuan, 35, was sentenced to six years and 10 months in jail on Friday after stealing close to S$2.3 million worth of cryptocurrency from an acquaintance’s cold wallet.

The case resembled a modern-day inside job rather than a typical cybercrime story as there were no hacking tools, phishing emails, or masked strangers behind computer screens. Instead, prosecutors said the theft relied on friendship, access, patience, and one photographed recovery phrase.

Teo pleaded guilty to six charges, including housebreaking, securing access to a cryptocurrency wallet to commit theft, and dealing with benefits from criminal conduct. Another 10 related charges were taken into consideration during sentencing, Channel NewsAsia (CNA) reports (May 8).

A football gathering became the heist setup

Teo first met the victim, 30-year-old Xuan Songtao, in 2022 through a mutual friend. The pair later co-founded a Non-Fungible Tokens (NFT) marketplace, with Teo serving as chief executive officer and Mr Xuan as chief operating officer.

But things changed after the collapse of crypto exchange FTX in late 2022, which wiped out large sums for many investors and rattled confidence across the crypto sector. Around that time, Mr Xuan moved his cryptocurrency holdings into a cold wallet for safekeeping. He also kept the wallet’s 24-word seed phrase (words and serial numbers) written on paper inside his condominium unit.

Prosecutors said Teo learned about the arrangement and began planning the theft.

During a football gathering at Mr Xuan’s condominium in December 2022, Teo allegedly took advantage of the situation by keeping the condominium access card after helping another friend enter the building.

Days later, while the victim was out celebrating New Year’s Eve at Marina Bay, Teo entered the unit alone using the access card. He searched the bedroom, found the seed phrase, photographed it, and left everything in place before meeting the group later that same evening.

The following day, prosecutors said he used the seed phrase to transfer 1.7 million USDT into his own cryptocurrency wallet.

Crypto theft still leaves a trail

The victim discovered the missing funds in March 2023 and filed a police report. A blockchain tracing company later linked parts of the transactions back to Teo’s wallet.

When confronted, Teo admitted to the theft and reportedly said he had suffered heavy losses following the FTX collapse.

Court documents showed the stolen funds were later used on luxury watches, legal and illegal gambling, and personal expenses. Some of the money also went towards paying off his Housing and Development Board (HDB) housing loan. Investigators recovered part of the proceeds, though some payments couldn’t be recovered.

Deputy Public Prosecutor Jonathan Tan argued that the crime was highly planned and driven by personal gain. He said Teo had used his knowledge of cryptocurrency systems and security practices to prepare for the theft after learning large sums would be stored in the cold wallet.

Court rejects mental health mitigation argument

The defence argued that Teo had been under psychological stress at the time of the offences. However, Deputy Principal District Judge Ong Chin Rhu said an Institute of Mental Health assessment found the former officer’s adjustment disorder was mild and not directly linked to the offences. The court decided it shouldn’t reduce his sentence.

Teo was granted a three-week deferment before beginning his sentence on May 29. His lawyer, Gino Hardial Singh, told the court that the delay was necessary to settle childcare arrangements and to bring in a domestic helper for his family.

The Ministry of Defence confirmed Teo has since been discharged from the SAF. The ministry said servicemen are expected to uphold high standards of discipline and integrity.

Investors need to rethink how they store recovery phrases and who knows about their holdings

Crypto theft cases usually involve anonymous online scams or overseas syndicates, but this case was different. The accused already knew where the assets were stored, how the wallet worked, and when the victim wouldn’t be home.

It also showed the harsh reality of digital assets: a cold wallet may protect funds from online hackers, but it cannot protect someone from physical access or misplaced trust in those around them.

As cryptocurrency is common in Singapore, this case may push more investors to rethink how they store recovery phrases and who knows about their holdings. Sometimes the weak point is human behaviour, not the surrounding technology.

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