- A former payroll executive at Bybit has been sentenced to nearly 10 years in prison for embezzling millions from the cryptocurrency exchange
- The executive funneled approximately $5.7 million into personal accounts, using the funds to purchase luxury items and real estate
- Bybit has managed to recover a portion of the stolen assets, including a luxury car and high-end goods
A former payroll executive at cryptocurrency exchange Bybit has been sentenced to nearly ten years for embezzling nearly $5.7 million from the company. Ho Kai Xin diverted substantial funds into personal accounts, financing a lavish lifestyle that included luxury vehicles and real estate investments. The case is one of the more startling episodes of inter-company crypto theft seen in the industry.
Elaborate Embezzlement Scheme
Ho Kai Xin, who oversaw payroll operations at Bybit, orchestrated a sophisticated scheme to siphon company funds. Beginning in May 2022, the executive manipulated financial records to authorize unauthorized payments to personal accounts. Initial fraudulent transfers amounted to $117,000, escalating to hundreds of thousands monthly as the deception continued undetected.
By the time of discovery, approximately $5.7 million had been embezzled and transferred into four personal cryptocurrency wallets. These funds were subsequently laundered into luxury purchases, including a $3.7 million down payment on a penthouse property.
Ho Ignored Court Order
The embezzled funds financed Ho’s extravagant lifestyle, featuring the acquisition of a Mercedes-Benz AMG A45, designer goods from brands like Louis Vuitton, and high-end watches. Despite a court order in October 2023 to freeze assets, the executive continued to spend lavishly, expending an additional $800,000 post-order. Upon arrest in early 2023, the executive attempted to mislead authorities by attributing the transactions to a fictitious cousin named “Jason Teo,” a claim that was later debunked during the investigation.
Bybit has managed to recover a portion of the stolen assets, reclaiming approximately $1.2 million. This includes $1.1 million retrieved from one of the implicated cryptocurrency wallets and nearly $140,000 from the executive’s bank accounts. Additionally, law enforcement seized luxury items valued at $330,000, encompassing the Mercedes-Benz and various designer goods. Despite these recoveries, a significant portion of the embezzled funds remains unaccounted for.
This case is one of the more extraordinary episodes of crypto company theft on record, with Ho clearly showing no signs of wanting to keep his activities secret.
