Crypto exchange Bybit has fallen victim to a major fraud case. A former company employee was sentenced to a long prison term for embezzling millions.
Fraud Mechanism: How It Happened
On February 20, a Singapore court delivered a verdict on Ho Kai Xin, a former employee of WeChain, a Bybit subcontractor. She was sentenced to 9 years and 11 months for payroll fraud, using Excel file manipulations to divert over $4.2 million into cryptocurrencies in her personal wallets. Monthly, she siphoned off hundreds of thousands of dollars, purchasing a penthouse and luxury items.
Where Is the Money? Crypto Wallets
Ho opened multiple crypto wallets and six bank accounts for her illegal transactions. Over a short period, more than $4.2 million left Bybit for her accounts. However, investigators recovered part of the funds, seizing $1.1 million in USDT and over $140,000 from a bank account, along with luxury items worth $330,000.
Imposture and False Identity
During her arrest, Ho attempted to blame a fictional cousin, Jason Teo, but investigations revealed he didn't exist. This lie added another charge to her case, while the well-planned fraud exposed potential vulnerabilities in the crypto sphere.
This case serves as a serious reminder for the crypto community about the need for enhanced security measures. Major fraud highlights system vulnerabilities, demanding a more cautious approach to their protection.
