Sei (sei) 
Crypto Exchange Bybit Hit by $4.2 Million Theft, Former Payroll Manager Sentenced to 9 Years in Prison
A former payroll manager, Ho Kai Xin, has been sentenced to 9 years and 11 months in prison for stealing $4.2 million from cryptocurrency exchange Bybit. According to court documents, Ho pleaded guilty to multiple charges, including cheating, benefiting from criminal conduct, and providing false information to a public servant.
How the Theft Occurred
Ho used her position as an outsourced payroll manager to manipulate Microsoft Excel spreadsheets, diverting funds meant for Bybit employees into her own bank accounts and electronic wallets. Between October 2021 and October 2022, Ho altered spreadsheet rows for payments owed by Bybit in USDT (Tether) to send the funds to her wallet address instead of the wallets of Bybit employees.
Ho’s crimes were discovered in September 2022 when a finance director at Wechain, the company handling payrolls for Bybit employees, noticed unusually large crypto transfers in the spreadsheet. After internal investigations concluded, a Wechain representative reported Ho to the police in February 2023, leading to her arrest two months later.
Consequences of the Theft
Ho used the stolen funds to buy luxury items, including sunglasses, bags, shoes, shirts, and rings from Louis Vuitton. She also placed a down payment on a penthouse worth over $2.7 million. Deputy Public Prosecutor Jeremy Bin stated that Ho’s actions were a “cheating spree” that drained her client company, Bybit.
In addition to her prison sentence, Ho will also serve a six-week jail sentence for disobeying court orders when she spent around $627,633 from the stolen funds on a penthouse and luxury goods after being ordered by a civil court not to use those funds.
Lessons Learned
This case highlights the importance of internal controls and monitoring in preventing theft and fraud in the cryptocurrency industry. Here are some tips for companies to prevent similar incidents:
- Implement robust internal controls and monitoring systems to detect suspicious transactions.
- Regularly review and audit financial records to identify any discrepancies.
- Use secure and reputable payment processing systems to prevent unauthorized transactions.
Stay up-to-date with the latest news and developments in the cryptocurrency industry on Global Crypto News.
