A former payroll manager at Bybit, Ho Kai Xin, has been sentenced to nearly 10 years in prison for defrauding the cryptocurrency exchange out of a staggering $5.7 million. The ruling, issued by a Singapore court, follows a guilty plea to 44 charges, including multiple counts of cheating and dealing with the proceeds of crime.
Ho, who was responsible for processing payroll for around 900 employees at Bybit, manipulated Microsoft Excel files to divert company funds into four crypto wallets that she owned. Prosecutors revealed that she managed to transfer approximately $4.2 million into these accounts, subsequently converting the cryptocurrency into fiat currency to support her lavish lifestyle. This included a nearly $750,000 deposit on a penthouse worth over $3.7 million and extravagant purchases from luxury brands like Louis Vuitton.
Despite her attempts to justify her actions by claiming a lapse in judgment due to the pressure of being a young mother, the court was not swayed. During court proceedings, her attorney argued for a lighter sentence, citing her two young children and claiming deep reflection on the consequences of her actions. However, the judge emphasized the serious nature of the fraud, describing her actions as a ‘cheating spree’ that inflicted significant financial damage on Bybit.
Ho’s fraudulent activities came to light after a whistleblower from WeChain, the platform that handled Bybit’s payroll, reported her misconduct to local authorities in February 2023. Following her arrest, she was previously sentenced to six weeks in jail for contempt of court because she squandered the stolen money despite a court order. Currently serving a sentence that began on January 27, her nearly 10-year term will kick off once her contempt sentence is concluded.
Authorities were able to recover some of the funds, including over $1.1 million worth of stablecoin Tether (USDT) from her digital wallets and more than $330,000 in luxury items, including a Mercedes-Benz that was seized during the investigation. Despite the recovery efforts, Ho has reportedly made no attempts to repay the remaining funds owed to Bybit.
This shocking case highlights the vulnerabilities within the cryptocurrency industry, especially in relation to payroll and financial operations. It also raises important questions about regulatory measures that could help prevent such frauds in the future.
