Bybit loses 4.2 million euros to theft, Singapore court rules: Cryptocurrency can be considered property

In the lawsuit filed by the exchange Bybit against its former employee for alleged misconduct, the ruling by the Singapore High Court could potentially provide assistance in "identifying and segregating digital assets." The judge deemed that stablecoins pegged to the US dollar can be considered as trust property.

Bybit Employee Allegedly Embezzles $4.2 Million, Legal Battle in Singapore

According to documents from the Singapore High Court, the exchange Bybit has filed a lawsuit against its payroll contractor employee, Ho Kai Xin, for allegedly misappropriating over $4.2 million in USDT and transferring it to addresses she owned and controlled. Ho Kai Xin also moved a certain amount of fiat currency to her bank account.

Ho Kai Xin, who was responsible for distributing salaries in cryptocurrency and fiat currency on behalf of Bybit through the Singapore company WeChain, is accused by Bybit of breaching her contract.

Although Ho Kai Xin argued that the theft was carried out by her family members, the judge did not find her defense credible and has ordered the defendant to return the funds.

Singapore Court: Cryptocurrency Can Be Considered Property

In the ruling, the judge stated: "Stablecoins, like any other thing in action, can be held on trust." Note: A thing in action is a right that can only be claimed or enforced through legal action rather than physical possession, such as the cash balance in a bank.

The judge's ruling also referenced the Monetary Authority of Singapore's public consultation response issued on July 3, 2023, which "reflects the possibility of identifying and distinguishing digital assets in practice," supporting the view that these assets can be held on trust.

The judge added: "A person holding crypto assets essentially has an incorporeal property right, considered a thing in action under common law, and thus enforceable in court. He indicated that this conclusion may have a 'circular element,' but there is no clear difference in how the law treats currency. The judge believed that it is because people widely accept the exchange value of shells, jewelry, or differently printed paper notes that they become currency."

The judge stated: "While some may be skeptical of the value of crypto assets, it is worth remembering that value is not inherent in the object itself."