SINGAPORE – A woman who was sued by a crypto exchange over her alleged misappropriation of US$4.2 million (S$5.6 million) worth of crypto has been charged in court.
Singaporean Ho Kai Xin, who was ordered by the High Court in July 2023 in civil proceedings to pay back the stolen sums to ByBit Fintech, had purportedly used the funds to buy a $362,000 Mercedes car and luxury goods.
On Feb 28, the 31-year-old was back in court to face 44 criminal charges over the missing funds.
She is accused of cheating, transferring the proceeds of crime and giving false information to the police.
The case concerns a cryptocurrency called Tether, a stablecoin pegged to the United States dollar and commonly referred to as USDT.
Ho was employed by WeChain Fintech, which provided payroll services for crypto exchange ByBit, and handled the spreadsheets that listed the addresses designated by employees of the exchange to receive their pay in cryptocurrency.
She allegedly cheated WeChain’s financial department into believing that eight people were owed USDT by WeChain, and induced the department to transfer cryptocurrency sums to various cryptocurrency wallets.
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According to charge sheets, she also deceived WeChain by claiming that she was entitled to a sign-on bonus and time off in lieu, and cheated the company into transferring $117,238 to a UOB account.
ByBit discovered the unusual payments in September 2022.
The police received a report on Feb 28, 2023 about the missing sums, which were purportedly misappropriated between May and August 2022 into cryptocurrency accounts allegedly belonging to Ho.
Officers from Bedok Police Division established the identity of the woman through follow-up investigations.
Photos of the seized proceeds show a black Mercedes sedan, a black Louis Vuitton bag, slippers and sunglasses from the luxury brand.
After she was confronted with the investigation findings, Ho told ByBit that the addresses belonged to her cousin, and that he had asked her to help make the transfers.
She then told the police that her supposed cousin, Jason Teo, had amended an Excel sheet without her permission. This was allegedly false.
Ho attended court on Feb 28 via video link from her place of remand.
Her lawyer, Mr James Gomez, asked for bail of between $100,000 and $150,000, saying that she is not a flight risk.
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Throughout the police investigations and civil suit, Ho remained contactable and did not attempt to abscond, said Mr Gomez, who added that Ho is a mother of a five-year-old boy and four months pregnant.
A police prosecutor asked for bail to be set at $500,000 and said it was very reasonable given the total sums involved. District Judge Brenda Tan granted the prosecution’s request.
Her case will be heard again on Mar 27.
In the 2023 High Court judgment on the civil suit, Justice Philip Jeyaretnam found that Ho had fraudulently transferred the assets to herself and ordered her to pay back the sums.
Those convicted of cheating could face a jail term of up to 10 years and a fine. Transferring the proceeds of crime carries the same maximum jail term, a fine of up to $500,000 or both.
The offence of giving false information to a public servant carries a jail term of up to three years, a fine of $1,000, or both.
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