Woman accused of pocketing US$4.2 million from crypto firm charged with cheating and other offences
SINGAPORE: A woman who handled the payroll for a cryptocurrency exchange allegedly pocketed US$4.2 million (S$5.65 million) by transferring United States Dollar Tether (USDT) to her own cryptocurrency wallets.
USDT is a type of cryptocurrency known as stablecoin that is designed to provide a stable price point.
Ho Kai Xin, a 31-year-old Singaporean, was charged in court on Wednesday (Feb 28) with 44 offences ranging from cheating, converting criminal proceeds and lying to the police.
Ho was employed by Wechain Fintech, a Singapore incorporated company that provides payroll services for ByBit Fintech, a cryptocurrency exchange.
The police said in a statement that they received a report on Feb 28 last year about a sum of US$4.2 million worth of USDT that had been allegedly misappropriated by an employee.
Officers identified Ho and found that she had transferred the sum to her cryptocurrency wallets and used the sum for various purchases.
Her cheating charges revolve around deceiving Wechain’s financial department into believing that certain people were owed USDT so that the financial department would transfer USDT into the relevant wallets.
According to a judgment by the High Court in July 2023 following a lawsuit launched by ByBit, Ho had gone on a “luxury spending spree”.
ByBit alleged that Ho cancelled her existing Build-to-Order (BTO) flat to buy a penthouse valued at about S$3.7 million, splashed out S$30,000 on Louis Vuitton products and bought a car for about S$362,000.
The High Court ruled in ByBit’s favour in the civil case and ordered Ho to return the stolen items and repay various sums.
Separately, in the criminal investigation, the police seized a pair of slippers, sunglasses, a bag and a car.
In the civil case, Ho had argued that the cryptocurrency wallets receiving the sums belonged to her maternal cousin called Jason Teo.
However, ByBit said that “Jason” was “an outright fabrication”. The High Court judge agreed with ByBit.
One of the criminal charges Ho faces is for giving false information to an investigation officer by claiming that she had a cousin named Jason Teo, who amended an Excel sheet without her permission.
She was offered bail of S$500,000 and her case was adjourned to March.
If convicted of cheating, she can be jailed for up to 10 years and fined for each charge. If convicted of transferring criminal proceeds, she can be jailed for up to 10 years, fined up to S$500,000, or both per charge.
For furnishing false information, she could be jailed for up to three years, fined up to S$1,000, or both.
