Ho Kai Xin, a former payroll manager at Bybit, has been reportedly sentenced to nine years and 11 months in prison for embezzling approximately $4.2 million from the exchange’s coffers.
According to The Straits Times, the 32-year-old Singaporean was convicted of cheating, money laundering, and providing false information to authorities. Court documents revealed that Ho manipulated payroll records while working as an outsourced payroll manager, diverting funds meant for employees into her own bank accounts and cryptocurrency wallets.
Prosecuting attorney Jeremy Bin described her actions as a calculated, escalating fraud.
Ho’s fraud started in May 2022, when she stole 117,000 Singapore Dollars (SGD) ($87,417) from Wechain, the company handling Bybit’s payroll. Encouraged by her success, she escalated her scheme, tricking Bybit into sending millions in USDT (Tether) directly to her.
Between May and August 2022, Bybit unknowingly transferred over 4.2 million USDT across eight separate transactions. Ho laundered the stolen funds through six bank accounts and four crypto wallets, converting them into fiat currency to evade detection.
She used the money to fund a lavish lifestyle, purchasing designer bags, sunglasses, shoes, and jewellery from brands like Louis Vuitton. She also placed a 750,000 SGD ($560,388) down payment on a $2.7 million penthouse.
The fraud was uncovered in September 2022 when a Wechain finance director spotted irregular payroll transactions. Bybit launched an internal investigation, leading to Ho’s arrest by local authorities in April 2023.
Ho will serve her sentence after completing a six-week jail term for violating court orders.
In another development, Bybit recently launched cmETH, a liquid restaking token to improve Ethereum staking opportunities. The token enables users to earn additional rewards alongside the yields from Ethereum’s Proof-of-Stake system. Bybit stated it integrated this token to help users maximize their returns on Ethereum investments.
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