A Singapore court has sentenced Ho Kai Xin, a former payroll manager, to nearly 10 years in prison for defrauding the crypto exchange Bybit of $5.7 million. The sentencing follows her guilty plea to 44 charges, including five counts of cheating and eight counts of dealing with criminal proceeds.
Fraud Uncovered: How It Happened
Ho committed the fraud while working at WeChain, a crypto networking platform that managed payroll for Bybit. In her role as the payroll team lead, she processed salaries for around 900 Bybit employees. Between May 2022 and October 2022, she manipulated Microsoft Excel files to reflect false payments owed by Bybit to four crypto wallets she owned.
Through this scheme, Ho transferred approximately $4.2 million to her accounts. She then converted the stolen crypto into fiat currencies, using the funds to support an extravagant lifestyle. Her purchases included a nearly $750,000 deposit for a $3.7 million penthouse, along with luxury items from Louis Vuitton, such as bags, rings, shirts, and shoes.
Court Proceedings and Sentencing
The Straits Times reported that Ho’s nine-year, 11-month prison sentence will commence after she completes her current six-week sentence for contempt of court. The contempt charge stemmed from her spending the stolen funds despite a court order to preserve them.
Deputy Public Prosecutor Jeremy Bin highlighted that Ho’s actions went undetected for months, emboldening her to continue her fraudulent activities. It was only in February 2023 that a WeChain representative reported the misconduct to the authorities, leading to her arrest two months later.
Recovery by and Remaining Losses
Bybit managed to recover more than $1.1 million worth of stablecoin Tether from Ho’s electronic wallets and over $140,000 from one of her bank accounts. Additionally, the police seized assets worth more than $330,000, including a Mercedes-Benz car. However, Ho has made no effort to repay the remaining stolen amount.
Also Read: Top White Label Crypto Exchange Development Companies
False Claims and Defense
Among the 44 charges Ho faced was providing false information to a public servant. During the initial investigation, she claimed that her cousin, “Jason Teo,” was responsible for the unlawful transactions. Investigators later confirmed that Teo did not exist.
Ho’s lawyer, James Gomez, requested a reduced sentence of eight years and eight months, citing her role as a mother of two young children. He argued that her actions were a “lapse in judgment” and that she had reflected deeply on the consequences for her family, the victims, and the justice system.
Conclusion
This case highlights the risks associated with internal fraud in crypto-related businesses and the importance of stringent monitoring systems. While Bybit has recovered some losses, the incident serves as a cautionary tale for companies handling significant financial transactions.
