A former payroll processing staff member at a fintech firm has pleaded guilty to multiple charges after stealing more than $5.7 million, mainly in cryptocurrency.
Ho Kai Xin, 32, was sentenced to nine years and 11 months in jail on February 20. She admitted to five counts of cheating, eight counts of dealing with criminal proceeds, and one count of giving false information to a public servant.
An additional 30 charges were considered in her sentencing. In January, she had already received a six-week jail term for contempt of court after spending stolen money despite being ordered not to.
How the Fraud Unfolded
Ho was employed by WeChain Fintech, a firm providing payroll services for Bybit, a well-known cryptocurrency exchange. She was responsible for processing salaries for 800 to 900 Bybit employees.
From October 2021 to October 2022, Ho manipulated Microsoft Excel spreadsheets used for payroll. She added fraudulent payment details, making it appear that Bybit owed cryptocurrency payments to her electronic wallets.
The fraud began in May 2022 when she altered payroll records to steal around $117,000 from WeChain. Encouraged by the success of her first theft, she continued the fraud, ultimately stealing millions from Bybit’s digital assets.
Between May 31 and August 31, 2022, Bybit unknowingly transferred over 4.2 million USDT (a stablecoin pegged to the US dollar) from its electronic wallet into Ho’s four personal cryptocurrency wallets. She then converted the stolen USDT into fiat currency.
Lavish Spending and Money Laundering
Ho used the stolen funds to finance a luxurious lifestyle. She placed a $750,000 down payment on a penthouse worth $3.7 million on Gilstead Road near Dunearn Road.
She also purchased expensive Louis Vuitton items, including sunglasses, bags, shoes, shirts, and rings, each costing thousands of dollars.
In total, she laundered more than $4.3 million of the stolen funds through her bank accounts and cryptocurrency wallets.
Investigation and Arrest
In February 2023, a WeChain representative reported the suspicious transactions to the police. Two months later, officers arrested Ho.
During the investigation, Ho attempted to mislead authorities. She falsely claimed that the unlawful transactions were made by her cousin, “Jason Teo”, who, in reality, does not exist.
The prosecution argued that Ho’s actions were deliberate and well-planned. She abused her position of trust and engaged in fraudulent activities over several months.
Her deception ultimately led to significant financial losses for Bybit. Given the scale of the fraud and her attempts to obstruct the investigation, the court sentenced her to nine years and 11 months in prison.
Ho Kai Xin’s case highlights the growing risks of financial fraud in the cryptocurrency sector. As digital assets become more mainstream, companies must implement stricter security protocols to prevent insider threats and fraudulent activities.
Rising Crypto Thefts
Ho’s case is part of a growing number of financial crimes involving cryptocurrency. Recently, Bermuda’s Prime Minister David Burt warned the public about a fake online account impersonating him. The fraudulent account falsely claimed Bermuda was launching a national cryptocurrency on the Solana blockchain.
In another case, former South Korean lawmaker Kim Nam-guk may face six months in prison for concealing $6.8 million in cryptocurrency holdings and failing to disclose them in financial reports.
As digital currencies become more common, authorities worldwide are tightening regulations to prevent fraud and hold offenders accountable.
Also Read: CluCoin Founder Sentenced To Over Two Years In Prison For Wire Fraud, Ordered To Pay $1.14 Million