Former payroll manager at Bybit, Ho Kai Xin, will serve 119 months (nine years and 11 months) in prison after being found guilty of embezzling approximately $4.2 million from the crypto exchange’s account.
According to court documents, she began the fraud in May 2022, stealing 117,000 Singapore Dollars (SGD), or $87,417 USD, from Wechain, the company handling Bybit’s payroll. She later manipulated her employer (Bybit) into transferring millions of USDT (Tether) into her cryptocurrency wallet, which she then converted to fiat currency, The Straits Times reported.
It was revealed that the 32-year-old Singaporean could carry out the large-scale embezzlement and diversion of the exchange’s funds into her bank accounts and crypto wallets because she was the outsourced payroll manager. To cover her tracks, she provided falsified and misleading information to authorities when an investigation into her financial past was initiated.
“Ho Kai Xin’s actions constitute a calculated and escalating fraud,” prosecuting attorney Jeremy Bin said after the court verdict.
Background
In May and August 2022, Bybit unknowingly transferred over 4.2 million USDT to eight different accounts, including fiat and crypto wallets, which she withdrew and used to support her extravagant lifestyle.
She was found to have used the funds to purchase designer bags, sunglasses, shoes, and jewellery from brands like Louis Vuitton, while also placing a 750,000 SGD ($560,388) down payment on a $2.7 million penthouse.
How the Fraud Was Detected
Her troubles began in September 2022, when a Wechain finance director discovered irregular and questionable payroll transactions, prompting Bybit to launch an internal investigation. Ho was arrested in April 2023.
In addition, the former payroll manager will first serve a 6-week jail term for contempt of court after being found guilty of violating court orders.