Defunct Hong Kong Exchange Moves Millions of Ether: What’s the Intention?
The defunct Atom Asset Exchange (AAX) in Hong Kong has raised concerns as large amounts of Ether worth over $56 million have been transferred from inactive wallets to different trading platforms. This movement has sparked doubts about the objective behind these transactions.
Funds Movement Sparks Concern
Cyvers Alerts, a blockchain analytics firm, reported that over 24,000 Ether, valued at approximately $55.6 million, started being transferred from AAX Exchange wallets at the beginning of this month.
- Analysts believe these transactions are an attempt to evade Anti-Money Laundering (AML) controls.
- Part of the funds linked to the exchange has been frozen by Tether, adding to the intrigue surrounding these events.
Arrests and Allegations
AAX’s abrupt failure in November 2022 led to the arrests of its ex-CEO, Thor Chan, and board member Haoming Liang. They were apprehended while attempting to flee the city during the crisis. The exchange’s founder, whose identity remains unknown, is alleged to be at large with significant amounts of user funds and the crucial private keys to the exchange’s wallets.
- As a result, 2 million AAX users are unable to access their accounts or withdraw their assets.
- Complaints from victims worldwide have been received, with losses totaling HK$98 million.
Hong Kong Police Action and Asset Recovery
Hong Kong police have taken swift action in response to the fraudulent activities associated with AAX. Two individuals related to the exchange have been arrested. Efforts are underway to track the transferred funds and recover the affected users’ assets. The police have also cautioned about the risks involved in cryptocurrency trading, particularly considering recent operational difficulties faced by various platforms.
Hot Take: AAX’s Fall and Its Impact on Crypto Users
The collapse of AAX has left millions of users stranded, unable to access their funds. This incident highlights the importance of conducting thorough due diligence when choosing a cryptocurrency exchange.
By
By
By
By
By