Crypto Fraudster Sentenced to Decade in Prison for $5.7M Scheme

A former employee of Bybit, a Seychelles-based cryptocurrency exchange, has been sentenced to nearly a decade in prison for her role in a $5.7 million fraud scheme. Ho Kai Xin, a former payroll processing staff member, was convicted on multiple charges, including cheating, dealing with the proceeds of criminal conduct, and providing false information to authorities.

Ho's fraudulent activities involved manipulating Microsoft Excel files to create false payment records, funneling cryptocurrency payments intended for employees into her personal electronic wallets. Over a span of four months, Bybit transferred over 4.2 million USDT into Ho's wallets in eight transactions. Ho then converted her ill-gotten gains into fiat currencies and used the stolen funds to finance a luxurious lifestyle, including purchasing a multimillion-dollar penthouse, high-end items from luxury brands, and a Mercedes-Benz.

Despite being ordered by the court to refrain from using the stolen assets, Ho spent nearly $840,000 on various luxury goods, resulting in an earlier contempt of court sentence. Authorities eventually recovered more than $330,000 worth of assets from Ho, including the vehicle and over 1.1 million USDT from her wallets. However, a significant portion of the stolen amount remains unrecovered, and Ho has yet to offer repayment.

During sentencing, the court noted the calculated nature of Ho's scheme, as she operated multiple bank accounts and electronic wallets to divert the fraudulent funds using sophisticated methods to avoid detection. Although her defense argued for a reduced sentence, citing her role as a mother of two young children, the severity of the crimes and the deliberate manner in which they were carried out led to the nearly decade-long prison term.