Former Bybit Payroll Manager Sentenced to Nearly 10 Years in Prison for $5.7M Fraud

A former payroll manager for the cryptocurrency exchange Bybit has been sentenced to nearly 10 years in prison after defrauding the company of $5.7 million. Ho Kai Xin, who worked at the crypto networking platform WeChain, was convicted of 44 charges, including five counts of cheating and eight charges related to dealing with the proceeds of criminal conduct.

The Singapore court handed down the sentence on February 20, following Ho's guilty plea. She received a 9-year, 11-month prison term, which will begin after she completes a six-week sentence for contempt of court. This earlier sentence was handed down after Ho spent some of the stolen funds despite a court order to refrain from doing so.

Details of the Fraud Scheme

Ho, who led the payroll team at WeChain, was responsible for processing the payroll of Bybit’s employees. During her time at the company, which lasted from October 2021 to October 2022, Ho amended Microsoft Excel payroll files to divert funds into crypto wallets she owned. Through this method, she misappropriated $5.7 million, with $4.2 million of the total sum sent to her wallets.

Once she had access to the stolen crypto, Ho converted it into fiat currency and used the funds to indulge in a lavish lifestyle. Among her purchases was a deposit of nearly $750,000 for a penthouse valued at more than $3.7 million. She also bought luxury goods, including items from Louis Vuitton, such as bags, rings, and clothing, according to Deputy Public Prosecutor Jeremy Bin.

Ho’s Attempted Cover-Up

When investigators first questioned Ho about the fraud, she provided a false story, claiming that her cousin, "Jason Teo," was responsible for the illegal transactions. However, further investigation revealed that this individual did not exist, and Ho's attempt to mislead authorities only added to her charges.

In addition to laundering over $4.3 million of the stolen funds, Ho failed to repay the remaining amount. However, Bybit was able to recover more than $1.1 million in stablecoin Tether (USDT) from her wallets and over $140,000 from one of her bank accounts. Law enforcement also seized assets worth over $330,000, including a Mercedes-Benz car.

Impact on the Victim and Family

Ho’s defense lawyer, James Gomez, requested a reduced sentence of 8 years and 8 months, citing her two young children and describing her actions as a "lapse in judgment." He also argued that Ho had reflected deeply on the consequences of her actions, which had affected her family, Bybit, and the justice system.

However, prosecutors emphasized that Ho's actions were not a one-time mistake, but a deliberate scheme that went unchecked as she became emboldened by her initial success. "When her actions went undetected, the accused became emboldened, going on a cheating spree to drain her client company, Bybit, of its monies," prosecutors said in court.

Final Sentencing

Ho’s nearly 10-year sentence marks the end of her criminal activity and serves as a warning about the consequences of fraud in the cryptocurrency space. Despite her attempts to cover up her crimes, the authorities’ swift investigation and Bybit’s recovery of some stolen funds helped mitigate the damage.

As Ho prepares to serve her sentence, the case highlights the increasing scrutiny faced by employees in the crypto industry, where fraud and financial misconduct can have significant consequences for both individuals and the companies involved.