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Bybit Ex-Payroll Manager Ho Kai Xin Sentenced to 9 Years for $4.2 Million Fraud

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  • Bybit, ex-payroll manager at Bybit  Ho Kai Xin, was charged with fraud, money laundering, and contempt of court, while Bybit recovered only a portion of the stolen funds
  • Ho has been sentenced to nine years and 11 months in prison for diverting over $4.2 million from Bybit

The ex-payroll manager at Bybit Fintech, Ho Kai Xin, has been sentenced to nine years and 11 months in prison for stealing $4.2 million in cryptocurrency. 

February 20, the 32-year-old Ho Kai Xin was sentenced to a jail term of nine years and 11 months after admitting to five cheating offenses, eight charges related to handling illegal funds, and one for providing false details to an official. During the course of the sentence, additional 30 offenses were taken into account.

How Ho Kai Xin Fraudulently Diverted Money From Bybit to Her Personal Account 

Court records showed that Bybit mistakenly transferred 4.2 million USDT to Ho Kai Xin’s wallets in eight transactions between May and August 2022. 

To carry out this theft, she modified payroll spreadsheets by adding extra rows and placing her own cryptocurrency addresses beside real employee names, tricking the finance team into thinking the payments were legitimate.

After which she presented the modified spreadsheets to her manager for confirmation, and because of trust in Ho, He would approve them without checking the details. After receiving approval, she passed the documents to WeChain’s finance team, which processed the payments.

For cryptocurrency transfers, she took extra steps by removing identifying information from the records before submitting them to Bybit. This helped conceal inconsistencies, enabling unapproved crypto funds to reach her personal wallets without being caught or noticed.

The first fund she diverted was in May 2022 by swindling Wechain of more than $117,000 after manipulating Microsoft Excel files that reflected payments that she was not entitled to.

She managed six bank accounts and four crypto wallets on different platforms, she spent the money on luxurious lifestyle, buying a $3.7 million freehold penthouse, a Mercedes-Benz AMG A45, and expensive Louis Vuitton items.

Ho Kai Xin Offences and Legal Consequences

Between May 31 and August 31, 2022, Bybit unknowingly transferred over 4.2 million USDT to Ho Kai Xin’s cryptocurrency wallets through eight different transactions that summed up to a  total of about $5.7 million she laundered more than $4.3 million of the stolen funds.

In February 2023, a representative from WeChain reported Ho’s crimes to the police, and that led to her arrest two months later. During questioning, she provided false information, claiming that her non-existent cousin named “Jason Teo” was responsible for all the illegal transfers. 

Authorities later seized more than $330,000 worth of assets from her, including a Mercedes-Benz. Bybit managed to recover over 1.1 million USDT from her cryptocurrency wallets and $140,000 from one of her bank accounts. 

February 20, 2025, her lawyer, James Gomez, requested a sentence of up to eight years and eight months in prison, arguing that she regretted her decisions.

Meanwhile, the court previously ordered her not to use any unlawfully obtained assets. Despite this, she violated the ruling and spent nearly $840,000 on luxury items. As a result, she received a separate six-week jail sentence for contempt of court on January 27.

She has been charged with 44 offenses, including fraud, money laundering, and providing false information to police. 

Related |  Coinbase CEO Calls Bitcoin a Meme Coin, Sparks Crypto Debate

21Shares Seeks SEC Greenlight for Ethereum Staking in Core ETF

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  • The SEC has recognized 21Shares’ proposal to introduce staking for its Ethereum fund.
  • Staking could help the ETF earn extra income from its Ethereum assets, which might be shared with investors.

The SEC has confirmed the receipt of a request from Cboe BZX Exchange on behalf of 21Shares. The filing asks for permission to stake Ethereum included in the 21Shares Core Ethereum ETF.

SEC Reviews Ethereum ETF Staking Proposal

On Wednesday, the US Securities and Exchange Commission (SEC) acknowledged the 19b-4 filing proposal for Ethereum ETF staking from Cboe BZX Exchange. The SEC agency responded to the request submitted on behalf of 21Shares, inviting the public opinion on the plan to allow the 21Shares Core Ethereum ETF to stake its ether (ETH).

Notably, James Seyffart, one of Bloomberg ETF analysts recently pointed out that this is the first ETF submission explicitly requesting Ethereum stake approval. If accepted, it would mark the first instance of an Ether ETF offering a stake in the U.S. The move could draw increased interest from both retail and institutional investors.

This move follows a filing by NYSE Arca last week, which requested approval to allow staking in Grayscale’s Ether ETFs. The Grayscale Ethereum Mini Trust ETF was introduced following the firm’s initial conversion of its Ether Trust into an open-ended fund. 

It currently manages nearly $1.3 billion in assets. Coinbase serves as the custodian for the 477,428 ETH owned by the trust.

The SEC’s Position and it’s Ongoing Regulatory Challenges

In past times, the SEC has maintained a strict approach toward proof-of-stake assets, especially under former Chair Gary Gensler, who classified staking-related activities as securities. This led many Ether ETF issuers to exclude staking from their filings to comply with the SEC regulations.

 However, the Trump administration, which is pro-crypto, has caused the agency to take a more crypto-friendly stance by forming a dedicated task force to evaluate digital assets. This group is now reconsidering whether certain tokens should be categorized as securities. 

Analysts believe that clearer rules on staking could boost adoption, particularly among institutions seeking higher returns in the crypto market. In addition, the SEC approved spot Ether ETF last year and has shown more flexibility toward digital assets.

Recently, there has been a high demand for Ethereum ETFs among institutions. In the last quarter of 2024, holdings by institutional investors increased from 4.8% to 14.5%. This trend shows a rising preference for Ether investment at the institutional level, which could grow even more if staking is allowed.

Related | Shiba Inu’s Price Slumps 50%, Community Awaits Rebound

Dave Portnoy launches $GREED 2 Amid The Crash of $GREED by 99%

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  • Dave Portnoy, Barstool Sports founder, created a Solana memecoin $GREED and sold his share making it dump by over 99%
  • Despite the controversy, Dave has launched $GREED2 and it has surged above $28 million before dumping more than 80% 

Dave Portnoy launched $GREED tokens, bought about 357.92 worth of the token making up 35.79% of the supply. He later sold everything, causing the price to drop by 99%. Amid the controversies of this coin, he moved on to launch $GREED 2. 

Dave Portnoy’s $GREED Sell-Off and the Aftermath

On Tuesday, the founder of Barstool Sports Dave Portnoy launched his first memecoin and he bought 357.92 million worth of $GREED which was about 35.79% of the total supply. 

After a few hours, he sold all the token he held which amounted to a 99% crash of the token. This sale resulted in a profit of about $258,000. As Portnoy sold off the token, the price of the coin crashed from $0.03 to $0.003 and the trading volume went from 21.6m to 2.812m within hours.

A data reased by Gecko terminal shows that $GREED’s valuation rose to about $47 million before it crashed to around $3 million within a few minutes.

Despite the crash and controversy around $GREED, Dave announced the launch of a new token called $GREED2. He advised that followers should invest in  with what they can afford to lose as. “It’ll be volatile” – he added. He currently holds around $268 million worth of these tokens, which accounts for approximately 27% of its total supply. 

Although Portnoy warned investors, the value of $GREED 2 has surged past $28 million before dropping under $750,000, based on data from pump.fun.

On X, he shared an image of Fortune Magazine’s 2005 cover story, “Is Greed Still Good?” featuring Michael Douglas, who played Gordon Gekko in the 1987 film Wall Street. This image is also used in to $GREED 2 memecoin on pump.fun.

While being busy with $GREED and $GREED 2, Portnoy found time to promote $JAILSTOOL, also known as Stool Prisondente, a Solana-based meme coin that he has endorsed since early 2025.

Related | Solana Faces Persistent Downtrend as Analysts Predict Drop to $125

Norwegian Prosecutors Charge Four Men in $80M Crypto Fraud and Laundering Case

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  • Four men have been charged with participating in a large-scale fraud and money laundering scheme
  • Two defense attorneys assert that their clients had no involvement in the crypto scheme

Norwegian officials have accused four men of running an $80 million cryptocurrency scam; they allegedly moved the money through a law firm’s accounts.

Norway Prosecutes Four in $80M Crypto Case

On February 16, Norway’s National Authority for Investigation and Prosecution of Economic and Environmental Crime (Økokrim) announced charges against four men for running a major cryptocurrency scam. The scheme collected over 900 million Norwegian kroner ($80 million) from investors within and outside Norway. 

Authorities say the money was moved through a law firm’s account and other  accounts belonging to several different companies in Asia so it could hide its source. This case marks a major effort by Norwegian officials to fight financial fraud in Norway.

Økokrim state prosecutor Joakim Ziesler Berge described the case as one of the biggest investment scams impacting global investors in recent years. According to the report, the fraud involved a complex scheme that misled people into participating. 

Victims joined a network where promotions were carried out using a multi-level marketing system. Recruitment happened through large events in various countries, with existing participants bringing in new paying members from their social circles.

Between March 2015 and November 2018, the alleged scheme convinced people to invest in what seemed like a highly profitable company. Investors were told they would receive shares and digital currency from the business. 

Økokrim claims that investors were misled into believing the company owned valuable assets and made large investments in different industries. Those who joined were encouraged to buy “product packages” containing the company’s own cryptocurrency and stock, thinking they were gaining a share in a successful and profitable venture.

Økokrim also added that it can show that there were no real investments made and that the company had no other income apart from funds contributed by members. 

The money collected from investors were then sent through complex channels to hide its origin before ultimately being paid out as “returns” to top recruiters, supporters, and earlier participants.

The four accused men age between their 50s, 60s, and 70s, and are all Norwegian nationals. Three of them are charged with having helped collect the money, while one of them is charged with having contributed to money laundering.

Defense Lawyers claims Clients’ Innocence in Crypto Fraud Trial

Christian Flemmen Johansen, speaking for one defendant, stated that his client rejects all claims and denies any connection whatsoever to the crypto scam scheme. Similarly, another attorney Ole Petter Drevland insisted that his client bears no legal responsibility. 

Other Information on the legal counsel for the remaining two accused individuals has not been presented at the time of writing. The trial is set to begin at Oslo District Court in September and is expected to last for 60 days.

Related | Shiba Inu’s (SHIB) 500% Growth by 2026: Overcoming 82% Drop

XRP Faces Pressure as Elon Musk’s DOGE Challenges SEC: Ripple’s Next Move

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  • The Department of Government Efficiency (DOGE) launched an X account, @DOGE_SEC, aiming to expose SEC misconduct, waste, and corruption.
  • Findings from DOGE’s review may increase scrutiny on the SEC’s past decisions and impact it’s future regulations.

Ripple’s XRP dropped by 4% during the Asian session on Tuesday after news broke that the Department of Government Efficiency (DOGE) plans to review the Securities and Exchange Commission (SEC). 

This development raised concerns among investors, leading to increased market uncertainty. Many are unsure about how this review could impact regulatory policies and the crypto industry at large.

The Mark of A New Beginning by the DOGE 

A recently created X account, @DOGE_SEC, is putting in efforts to expose misconduct, misuse of funds, and corruption within the regulatory agency. In the X post, the account encouraged followers to send a message on any issues related to finding waste, fraud and abuse relating to the Securities and Exchange Commission.

This initiative aims to bring transparency and accountability, drawing attention from the crypto community and beyond.

Expectations Amid the Investigation of SEC 

DOGE’s aim to investigate potential waste, fraud, and misconduct has caused significant market fluctuations over the past 24 hours, sparking discussions across various digital asset circles. 

If Department of Government Efficiency uncovers waste or misconduct in crypto-related cases, including Ripple vs. SEC, it would strengthen its beliefs that the agency targeted digital asset firms under former Chair Gary Gensler. This could weaken SEC position in their opposition against Ripple could add pressure on regulators and fuel debates about past decisions.

Stuart Alderoty, Ripple’s Chief Legal Officer has suggested that new information will soon come out in the case against the company.“I have the receipts”, He hinted while revealing important documents that could expose the SEC’s actions. 

Investors and analysts are closely watching for any developments that might influence regulations or impact the broader financial landscape.

Related | MEMX Exchange Files for SEC Approval to List 21Shares XRP ETF

India Cracks Down on $190M Crypto Fraud Tied to BitConnect

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  • Indian authorities have seized almost $190 million worth of crypto tied to the BitConnect Scam 
  • Authorities uncovered dark web transfers across many crypto wallets 

The Indian law enforcement has seized about $190 million in cryptocurrency linked to the BitConnect Ponzi scheme. This is one of India’s biggest actions to combat crypto fraud.

The Enforcement Directorate (ED) in Ahmedabad has seized Rs 1,646 crore worth of digital currency in the BitConnect scam. Reports have it that investors were tricked into believing they were making secure securities investments. 

Unraveling the BitConnect Crypto Ponzi Scheme

BitConnect was formerly a cryptocurrency platform that operated between 2016 and 2018. It  collapsed under allegations of being a Ponzi scheme. The Platform was founded by Satish Kumbhani. BitConnect offered a proprietary digital currency called BitConnect Coin (BCC) and promised high returns through a lending program. 

The platform claimed it had developed exclusive trading software that were designed to manage market fluctuations and give investors monthly profits of up to 40%.

The Enforcement Directorate of Ahmedabad started their investigation about the platform due to multiple police complaints in Surat. The investigation revealed a complicated network of transactions across many crypto wallets, to find out who controlled them. Many transfers went through the dark web to hide their tracks.

However, by following different wallets and using ground intelligence, the officials were able to trace the wallets and locate the places where the devices holding the digital currency were stored.

Other Assets Seized By the Indian Government 

The authorities also confiscated ₹1.35 million ($15,582), an SUV, and various electronic gadgets. These assets were linked to individuals associated with BitConnect. 

Over 4,000 investors were defrauded across 95 nations, which resulted in an estimated loss of $2.4 billion. The investigation is still ongoing as authorities work to uncover more details about the fraud.

Satish Kumbhani was charged in 2022 by the US Department of Justice but remained a fugitive until Indian authorities recently traced him to Ahmedabad. The ED has issued a lookout circular to prevent his escape and is preparing to take him into custody.

Related | Pantera Capital Founder Faces Tax Probe Over $850M Crypto Profits

NYSE Seeks SEC Approval to Enable Ethereum Staking in Grayscale’s Spot ETF

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  • NYSE has filed to the NYSE to  permit staking for Grayscale’s Ethereum ETFs
  • Grayscale will not promote any level of return from staking

The New York Stock Exchange (NYSE) has submitted a filing to the U.S. Securities and Exchange Commission (SEC) on behalf of Grayscale, requesting approval to incorporate staking into its spot Ethereum exchange-traded funds (ETFs). 

This recent submission, makes NYSE join other exchanges seeking approval to integrate staking into Ethereum based exchange traded products. Earlier this week, Cboe BZX Exchange filed a similar request for the 21 shares Core Ethereum ETF to be staked. 

If the exchange gets approved, the ETFs could help generate extra rewards from their large Ethereum holdings, which might be distributed to investors as additional returns. NYSE’s filing also mentions that “the Trust” would receive a portion of the staking rewards, which would be considered income for the funds, potentially increasing their overall value.

The Grayscale Ethereum Mini Trust ETF, was introduced following the company’s first transition of its Ethereum Trust into an open end fund. The firm manages almost  $1.3 billion in assets and Coinbase serves as the custodian for the trust’s 477,428 ETH holdings.

Grayscale Does Not Assure Profits from Ethereum ETF Staking

Grayscale’s filing made it clear that it would not guarantee or promote fixed earnings from staking. The company stated that staking activities for the Trust would not be classified as “delegated staking” or included in a “staking as a service” model.

21Shares Leads in Staking Proposal for Spot Ether ETF

Just days ago, 21Shares became the first asset manager to submit a proposal for staking within its spot Ether ETF, with CBOE BZX Exchange filing with US SEC on its behalf.

 Before regulators approved spot Ether ETFs in July 2024, they required issuers to exclude staking rewards. Mark Uyeda, the acting Chair of the SEC, has appointed Hester Pierce to lead an agency task force that would rewrite crypto policies  and provide guidance for the industry. 

Related | Dogecoin (DOGE) Surges Amid Bullish Market: Aiming for $1.35 by Mid-April

$LIBRA Token: Milei’s Withdrawal, Whale Activities, and the 89% Price Crash

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  • Javier Milei President of Argentina distanced himself from the $LIBRA token claiming that he didn’t properly vet the project
  • $LIBRA coin rose to a $4.5 billion market cap but fell by 89% within minutes
  • On-chain analysts expose LIBRA’s red flags and whale activities 

Argentina President Javier Milei introduced the $LIBRA token, which sparked significant market interest. Later on, he separated himself from the project, claiming that he didn’t have complete understanding. 

Within hours of this announcement, the token experienced a dramatic collapse, wiping out $4.4 billion in market value.

LIBRA Drops 89% as Traders Doubt Its Legitimacy

Late Friday, President Javier Milei’s X account promoted the $LIBRA token, a Solana-based meme coin. He stated that the token aimed to boost economic growth by providing capital for small enterprises. The Viva La Libertad Project also described the $LIBRA token as a financial tool to support startups and local businesses in Argentina. 

After Milei’s post, $ LIBRA’s value surged to about $6 billion, making it as valuable as one of Argentina’s major banks. At one point, the token was trading at $4.50 but due to low liquidity, its price collapsed to $0.99159 within hours. 

This sudden drop caused shockwaves across both the crypto industry and Argentina’s political scene. 

Amid the crash, Milei confirmed to Bloomberg that he did share the LIBRA token launch, but it is not his project. He claimed that he had not thoroughly vetted the project before endorsing it. And he retracted his support and unfollowed the token’s official account.

Whale Activities Amid $LIBRA Token Turmoil

An analysis released by chainanalysis identified key issues about the token launch some of which are the token’s initial funding in SOL through an instant swap service and a large amount of the supply being controlled by one wallet.

Chainalysis also discovered that the wallet used to create the token and the one holding the highest amount of supply are both managed by single private keys. This is unusual since most new tokens use multi-signature security for added protection.

While this was going on, another report came in from Data Nerd that a whale identified as 62KQa sold 659,000 $LIBRA tokens for $392,000, despite buying it for $2.5 million. 

This resulted in a loss of about $2.1 million, with an ROI of -84.32%. This major sell-off signals a significant setback for $LIBRA, potentially affecting trader confidence and overall market liquidity.

Other reports showed that the $LIBRA team withdrew $107 million from liquidity pools, 57.6M $USDC and 249,671 $SOL($49.7M). 

What’s Next for LIBRA?

Currently, the $LIBRA coin is trading at $0.2511, down nearly 95% from its peak. Many traders are now wondering about the price of this asset and whether it can recover or continue to decline.

Investors are on the watch for further updates. Some believe the token price may stabilize, while others fear it could be a pump-and-dump scheme. As always, traders should do thorough research before investing.

Related | Can XRP Breakthrough $3.40 Resistance for Major Rally?

HashFlare Founders Plead Guilty in $577M Crypto Mining Fraud

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  • HashFlare services caused a $577 million Ponzi scheme, deceiving global investors.
  • Sergei Potapenko and Ivan Turõgin could face up to 20 years in prison.

The co-founders of HashFlare pleaded guilty on Wednesday to wire fraud conspiracy after running a $577 million Ponzi scheme that scammed hundreds of thousands of investors worldwide through fake crypto mining.

The HashFlare Crypto $577M Fraud Revealed

In November 2022, two Estonian nationals were arrested by the Estonia authorities. Sergei Potapenko and Ivan Turõgin, co-founders of a cloud mining service were arrested and handed over to the United States on an 18-count indictment. 

HashFlare was active from 2015 to 2019. It provided cloud mining services where users could mine cryptocurrencies like Bitcoin and Ethereum without buying or needing any expensive hardware. The idea was to buy contracts to rent hashrate from HashFlare’s mining equipment.

After an extensive investigation by the FBI, the two founders have pleaded guilty to a $577 million cryptocurrency Ponzi scheme. The investigation was reported by the U.S. Department of Justice (DOJ). Yesterday, both men pleaded guilty to a charge of conspiracy to commit wire fraud and money laundering, which could lead to a maximum sentence of 20 years in prison.

Further investigations showed that they laundered stolen funds through crypto accounts and with that funds, they acquired 75 properties, six luxury cars, and more mining equipment. 

After investigations, court documents showed that HashFlare had less than 1% of the mining equipment it claimed to have, meaning the computing power Potapenko and Turõgin sold was much smaller than advertised. And when investors tried to withdraw their earnings, the two men either made excuses or paid them back using crypto bought from the market. 

Additionally, HashFlare promoted a fake crypto bank called Polybius, which failed to pay the promised dividends, increasing the financial losses for investors.

Potapenko and Turõgin’s lawyers claimed that none of HashFlare’s investors actually lost money. And the only crime the men committed was lying about the size of HashFlare’s mining operation.  After pleading guilty, the two men  agreed to give up assets worth over $400 million, which will be used to repay victims.

 Related |  HashKey Group Secures $30 Million Investment from China’s Gaorong Ventures

CZ’s Dog ‘Broccoli’ Sparks Meme Coin Surge and Crash

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  • CZ’s dog name reveal sparked a rise of Broccoli themed meme coins on meme coin trading platforms.
  • A Broccoli inspired memecoin on Solana hit a market cap of $1.5 billion
  • CZ clarified that he isn’t issuing a memecoin and the creation of any memecoin is dependent on his community 

CZ revealed his dog’s name in an X post, sparking a wave of meme coins inspired by the name. The token quickly gained traction, surging in value as traders jumped on the trend.

Changpeng Zhao “CZ”, former Binance chief, casually replied to a post on X that he had a Belgian Malinois and not a Shiba Inu and from there different comments urged him to release the name of the pet. 

CZ reacted to the hype, wondering how meme tokens work and if there’s any  “authentic” one that holds any significance. 

His comment prompted speculators to predict the pet’s name, leading to a wave of creations such as CLEO, LOU, and PERRY. These assets launched on BNB Chain, soaring to valuations in the millions before CZ finally released his pet’s name.

$BROCCOLI Token Surges and Falls Following CZ’s Name Reveal

On Thursday 13th February, CZ shared the story of his dog. He added that he wanted to give the dog a name that started with B and had some green in it.  This announcement caused a spark in the market and within minutes, a flood of $BROCCOLI themed memecoins filled the market. 

This includes Solana’s Pump.fun, which has over 480 Broccoli-inspired tokens, BNB Smart Chain’s Four.Meme, with about 300 CZ-dog-themed tokens as of now. Some have gained popularity, with a Solana Broccoli memecoin hitting a $1.5 billion market cap on February 13.

Despite CZ’s coming out to clarify  that he had no involvement in any coin launch, and he believes It’s up to the community to do that, there has continued to be buzz in the market, which just goes ahead to  show the unpredictable nature of crypto speculation.

Alhough CZ maintains a neutral stance on the subject, he mentioned the possibility of engaging with the top meme tokens on Binance’s BNB Chain (BSC). He also added that the BNB foundation may provide rewards for the top memes on the BNB Chain, giving LP support or other forms of rewards.

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