Ex-ByBit Payroll Officer Jailed for $4.2M Crypto Fraud, Faces 44 Charges

• Ex-ByBit payroll officer stole $4.2M USDT, funding a lavish lifestyle before being caught and jailed for contempt.
• Ho ignored court asset freezes, spending $840K on luxury goods despite warnings, leading to legal action and jail time.
• She faces 44 charges, including fraud and money laundering, with sentencing set for February 20 after pleading guilty to 14 counts.

A former payroll officer, Ho Kai Xin, misappropriated US$4.2 million (S$5.7 million) in cryptocurrency from ByBit Fintech. Despite a court order freezing her assets, she continued spending on luxury goods and property. Consequently, the High Court sentenced her to six weeks in jail for contempt. Meanwhile, she faces additional criminal charges, with sentencing set for February 20.

Lavish Lifestyle Funded by Fraud

Ho worked for WeChain Fintech, which managed payroll for ByBit. She controlled spreadsheets listing employee payments, allowing her to manipulate transactions. Besides, she inserted fraudulent crypto transfers into her own wallets, disguising them as employee payments. Her scheme ran from May to August 2022, resulting in eight unauthorized transfers totaling 4.2 million USDT.

Additionally, she altered fiat currency transactions, securing another $117,238.46 in illicit payments. She then converted stolen USDT into fiat and transferred the funds across multiple bank accounts. Ho used the money to buy a $3.7 million penthouse, a Mercedes-Benz AMG A45, and Louis Vuitton products.

Court Orders Defied Despite Warnings

ByBit discovered the fraud in September 2022 after a WeChain finance director noticed unusually high crypto payments. Investigations revealed Ho’s fraudulent transactions, but she attempted to cover her tracks. She modified wallet addresses and fabricated a cousin named “Jason Teo” as the owner of the stolen funds.

In October 2022, the High Court ordered her assets frozen. However, she ignored the injunction and spent $840,000 between November and December. ByBit then sued her for contempt, seeking nine months’ imprisonment. On January 27, Justice Philip Jeyaretnam sentenced her to six weeks’ jail.

Legal Consequences and Ongoing Proceedings

ByBit recovered 1.17 million USDT and $141,787.11 from her bank accounts, but she has not repaid the remainder. Furthermore, she faces 44 criminal charges for cheating, money laundering, and providing false information. On January 16, she pleaded guilty to 14 charges, with sentencing scheduled for February 20.

Her deception wasted 140 man-hours as authorities investigated “Jason Teo.” The court must now decide whether her civil contempt sentence runs concurrently or consecutively with her criminal penalty. Consequently, this case highlights the vulnerabilities in corporate financial oversight and the severe repercussions of crypto-related fraud.