This week in the crypto world has been full of big news: frauds, scandals, and regulatory shifts. Here are the key stories you need to know.
Fraud in Bybit: What Happened
Ho Kai Xin, a former payroll manager at Bybit, has been sentenced to nine years and 11 months in prison for embezzling approximately $4.2 million from the crypto exchange. She was convicted of cheating, money laundering, and providing false information to authorities. Her fraud began in May 2022 when she stole $87,417 from Wechain, the company handling Bybit’s payroll. Encouraged by her success, she escalated the scheme, tricking Bybit into transferring millions in USDT across eight separate transactions. The funds were used for lavish purchases, including luxury goods and real estate.
Consequences for Ho Kai Xin
Ho Kai Xin's fraud unravelled in September 2022, thanks to the diligence of a Wechain finance director, leading to an internal investigation by Bybit. She was arrested in April 2023, and she will serve her sentence after completing a short term for court order violations.
Other Important Crypto Events
Besides the Bybit case, the crypto world continues to grapple with hot topics. Vitalik Buterin criticized the shift towards gambling in crypto, while Argentina's President Milei denied promoting the LIBRA memecoin. Meanwhile, China's digital yuan continues to impact global trade dynamics, and European regulators implement new training requirements for crypto advisors. These events highlight ongoing shifts and narratives in the digital asset world.
The current events highlight the importance of due diligence and legal clarity in the rapidly evolving world of cryptocurrencies. As regulations and innovations progress, users should remain particularly vigilant.
