Ex-manager of Bybit sentenced to 10 years for $5.7 million fraud

A former payroll manager at Bybit, one of the most well-known cryptocurrency exchanges, has been sentenced to 10 years in prison for embezzling 5.7 million dollars from the company. 

The case highlights the internal risks to which exchanges are exposed and the importance of effective control systems to prevent financial fraud.  

The case: a million-dollar fraud against Bybit  

The former manager, responsible for managing the employees’ payroll at Bybit, took advantage of his role to orchestrate an internal fraud. 

Through a series of unauthorized transactions, he embezzled 5.7 million dollars, exploiting the vulnerabilities in the business processes.  

According to the investigations, the manager manipulated the payments intended for employees, diverting large sums of money to personal accounts. The fraud was discovered only after a thorough financial review, which revealed discrepancies in the accounts.

The anomalies in the financial flows of Bybit have raised suspicions, leading the exchange to conduct an internal investigation. The analysis of bank movements revealed unjustified withdrawals and irregular deposits, attributable to the former payroll manager.

Once the fraud was discovered, Bybit reported the case to the competent authorities, initiating a legal proceeding that led to the conviction of the manager. 

The process highlighted the lack of adequate controls within the company, which allowed the employee to operate undisturbed for a prolonged period.  

After an in-depth process, the court sentenced the former payroll manager to 10 years of imprisonment. The sentence reflects the severity of the crime and the economic damage suffered by Bybit.  

The conviction sends a clear signal about the importance of transparency and security in corporate financial processes, especially in the cryptocurrency sector, where transactions can be difficult to trace without adequate monitoring tools.

Lessons learned: the importance of internal security in cryptocurrency exchanges  

The case highlights the need for exchanges to adopt stricter internal security measures. The management of payroll, as well as any financial operation, must be subjected to cross-checks to prevent internal fraud.  

Among the solutions that could improve security are:  

• – Regular audits on financial transactions  
• – Limited access to corporate accounts  
• – Automated monitoring systems to detect suspicious activity  
• – Independent audits by external entities  

The adoption of these measures could reduce the risk of fraud and ensure greater reliability in the bull and bear cryptocurrency sector.  

The conviction of the former Bybit manager for a $5.7 million fraud represents an emblematic case of the internal risks to which cryptocurrency exchanges are exposed. 

Financial security must become a priority for companies in the sector, through stricter controls and advanced verification protocols. Only in this way will it be possible to protect company resources and maintain user trust.