Bybit Employees $5.7M Heist Ends in Mercedes Seizure & Prison
- Ex-Bybit payroll chief gets nearly 10 years for stealing $5.7M in crypto.
- Singapore court first to recognize crypto as property held in trust.
- Landmark ruling sets precedent for crypto legal cases, boosts investor protection.
Ho Kai Xin, former payroll chief at cryptocurrency exchange Bybit, is sentenced to nine years and eleven months in prison for public funds misappropriation amounting to $5.7 million. Ho conducted a series of illegal transfers, moving large amounts of cryptocurrency from Bybits corporate e-wallet to four personal wallets under her control.
The case dates back to 2023 when the based exchange filed a lawsuit against Ho, alleging she violated her employment contract by the unauthorized transfer of USDT to her personal crypto addresses and fiat currency to her bank account. Bybit moved the court for the return of the stolen funds or their equivalent value.
When confronted with suspicious transactions, Ho, initially claimed the transfers were accidental or due to technical errors. She later shifted blame to her maternal cousin, Jason Teo, alleging he stole her personal identification, preventing her from accessing her accounts. However, Judge Philip Jeyaretnam ruled out the existence of Teo. Consequently, the court granted Bybit a summary judgment against the contractor. She was also ordered to cover Bybits legal costs of $45,000 plus disbursements of $11,500.
Authorities also seized assets, including a Mercedes-Benz, while Bybit recovered over $1.1 million in $USDT.
Singapore High Court Makes History In Bybits Case
This case marks a significant landmark decision for the burgeoning digital asset industry in Singapore. Because the High Courts ruling explicitly recognized cryptocurrency as property that can be held in trust. The ruling subsequently set a legal precedent with several other common law jurisdictions. In January 2023, an English High Court also recognized that Bitcoin and other cryptocurrencies are considered property and can be subject to a proprietary injunction.
It also provided much-needed legal clarity and protection for cryptocurrency holders and exchanges operating within Singapores jurisdiction.
Ho Kai Xins sentencing underscores the severity of financial crimes involving digital assets and serves as a deterrent against future malfeasance within the cryptocurrency space. The case highlights the importance of robust internal controls and vigilant monitoring of financial transactions within cryptocurrency exchanges.
Read more: https://www.tronweekly.com/bybit-heist-mercedes-seizure-prison/
Text source: TronWeekly
