From Payroll to Prison: The $5.7M Bybit Fraud That Shocked Crypto
A former payroll manager who orchestrated a sophisticated payroll fraud scheme has been sentenced to nearly a decade behind bars after siphoning $5.7 million from cryptocurrency exchange Bybit.
The Singapore court’s verdict follows a detailed investigation exposing her calculated deception and lavish spending spree funded by the stolen money.
A Calculated Bybit Payroll Scam
Ho Kai Xin, who led the payroll team at WeChain—a crypto networking platform managing Bybit’s payroll—exploited her position to falsify payment records and funnel millions into her personal crypto wallets. Between May and October 2022, she manipulated Microsoft Excel payroll files to fraudulently transfer $4.2 million to four digital wallets under her control.
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Authorities reported that Ho laundered over $4.3 million of the embezzled funds, splurging on luxury items, including a $750,000 deposit on a high-end penthouse valued at $3.7 million. She also indulged in extravagant purchases from Louis Vuitton, such as handbags, rings, blouses, and shoes.
Her fraudulent activities went undetected for months, emboldening her to continue the scheme. However, in February 2023, a WeChain representative flagged financial discrepancies to authorities, leading to her arrest two months later.
In an attempt to mislead investigators, Ho falsely claimed that a relative named ‘Jason Teo’ was responsible for the unauthorized transactions. However, forensic analysis quickly debunked her statement, revealing that Teo was a fictitious individual created to divert suspicion.
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Legal Consequences and Asset Recovery
On Feb. 20, a Singapore court sentenced Ho to nine years and 11 months in prison after she pleaded guilty to 44 charges, including five counts of cheating and eight counts of handling criminal proceeds. This new sentence follows an earlier six-week contempt of court charge imposed last month after she defied judicial orders and continued spending the stolen money. Her latest prison term will commence after completing her prior sentence, which began on Jan. 27.
Despite recovery efforts, Bybit has only reclaimed a portion of the stolen funds. Authorities seized approximately $1.1 million in Tether (USDT) from Ho’s digital wallets, over $140,000 from her bank accounts, and around $330,000 worth of luxury goods, including a Mercedes-Benz. However, Ho has not made any restitution efforts for the remaining losses.
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A Stark Warning for Financial Security
Prosecutors emphasized the severity of Ho’s crimes, citing her deliberate abuse of trust and growing audacity in deceiving Bybit. They argued that her actions not only inflicted financial damage but also undermined confidence in financial institutions handling crypto transactions.
Her lawyer, James Gomez, sought a reduced sentence of eight years and eight months, arguing that she was a mother of two young children and that her actions were a ‘lapse in judgment.’ However, the court determined that the scale and nature of her deception warranted a harsher punishment.
This case shows the critical need for stringent financial controls, proactive fraud detection, and regular internal audits—especially in the rapidly evolving crypto industry. Businesses handling digital assets must implement rigorous security measures to prevent insider threats and maintain transparency in financial operations.
