Bybit Scandal: Former WeChain Manager Sentenced to Prison for Massive Fraud

By / / Crypto News, Daily News
Bybit Scandal: Former WeChain Manager Sentenced to Prison for Massive Fraud
Table Of Contents
  1. How the Bybit Payroll Fraud Unfolded
  2. Fraud Timeline: Months of Undetected Theft
  3. Bybit’s Recovery Efforts: Millions Still Missing
  4. Ho’s Failed Attempt to Evade Responsibility
  5. Singapore Court’s Verdict: A Stiff Sentence for Fraud
  6. Bybit CEO Calls Out Pi Network as a Scam

A former payroll manager at WeChain, Ho Kai Xin, has been sentenced to nearly 10 years in prison after a Singapore court found her guilty of embezzling $5.7 million from cryptocurrency exchange Bybit. The court convicted her on 44 counts of fraud and money laundering, revealing how she manipulated payroll records to siphon funds into her personal crypto wallets, later converting them into fiat currency to finance a lavish lifestyle.

How the Bybit Payroll Fraud Unfolded

While overseeing payroll for Bybit’s 900 employees at WeChain, Ho altered Microsoft Excel files to falsely reflect inflated salary figures. Exploiting this manipulation, she transferred approximately $4.2 million to four cryptocurrency wallets under her control. The stolen funds were subsequently converted into fiat currency, enabling her to purchase luxury items such as a Mercedes-Benz, high-end designer bags, and even a $750,000 penthouse deposit.

Fraud Timeline: Months of Undetected Theft

The fraudulent activities spanned from May 2022 to October 2022. Ho’s scheme remained unnoticed for months, allowing her to continuously exploit payroll discrepancies. It wasn’t until February 2023 that WeChain detected financial inconsistencies and reported them to authorities. Following an internal investigation, law enforcement arrested Ho in April 2023, uncovering the full extent of her fraudulent activities.

Bybit’s Recovery Efforts: Millions Still Missing

Despite Ho’s elaborate laundering attempts, Bybit successfully recovered $1.1 million in Tether (USDT) from her digital wallets. Authorities also seized $140,000 from her bank accounts and confiscated assets valued at $330,000, including a luxury car. However, over $4.3 million remains unaccounted for, and Ho has made no restitution offers.

Ho’s Failed Attempt to Evade Responsibility

When questioned by investigators, Ho tried to shift the blame by fabricating a non-existent cousin named “Jason Teo,” whom she claimed was responsible for the unauthorized transactions. However, authorities quickly exposed the lie, further reinforcing her direct involvement in the scheme. Her attempts to mislead investigators only aggravated her legal troubles, contributing to a harsher sentence.

Singapore Court’s Verdict: A Stiff Sentence for Fraud

After pleading guilty to multiple charges, Ho received4 a prison sentence of nine years and 11 months. Additionally, she must serve a separate six-week contempt of court sentence for defying legal orders and continuing to spend stolen funds. Prosecutors emphasized her lack of remorse, describing her actions as a calculated “cheating spree” that inflicted significant financial damage on Bybit.

Bybit CEO Calls Out Pi Network as a Scam

Amidst this high-profile fraud case, Bybit CEO Ben Zhou has publicly criticized Pi Network, labeling it a scam. Zhou referenced a 2021 warning from Chinese authorities about potential fraudulent activities surrounding the project, urging investors to exercise caution.

The case serves as a stark reminder of the vulnerabilities within crypto payroll systems and the importance of stringent financial oversight to prevent similar incidents in the future.

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