Dormant AAX Crypto Exchange in Alleged $56M Funds Transfer to Elude AML Laws
Summary:
A dormant Hong Kong-based cryptocurrency exchange, AAX, is purportedly moving funds estimated to be $55.6 million from its wallets to various exchanges in an attempt to bypass regulatory controls. Cyvers Alerts, a blockchain analysis firm, traced this movement, indicating possible efforts to elude Anti-Money Laundering (AML) laws. The report also states that ex-CEO Thor Chan and board member Haoming Liang were apprehended for evasion attempts in 2022, while the anonymous founder, with over $29 million of user funds, is still at large. Currently, the official AAX website is inactive, and its Twitter account remains dormant since November 2022.
A dormant cryptocurrency exchange based in Hong Kong has reportedly started transferring funds from its wallets to an assortment of decentralized and centralized platforms. This is purportedly an attempt to bypass Anti-Money Laundering (AML) regulations, as per the intelligence from blockchain analysis firm Cyvers Alerts on February. Since the beginning of this month, they have tracked the movement of more than 24,000 Ether (ETH) from Atom Asset (AAX) Exchange wallets, totalling $55.6 million. Analysts noted apparent evidence suggesting the attempts to dodge AML protocols. Furthermore, it seems that some of the transferred funds, originating from the exchange, have been penalized by Tether.
The prior recorded transactions over AAX Exchange wallets happened in October 2023 and preceding to that in November 2022. Before its cessation, AAX operated as one of Hong Kong's topmost crypto exchanges, boasting over 2 million consumers. The lock-down of AAX commenced on November 13, 2022, just 48 hours after the firm FTX declared its bankruptcy. AAX swiftly stopped fund withdrawals and eradicated all digital communications due to counterpart risk susceptibility. As per data collected by Cyvers, AAX's website and mobile application stopped working on December 16, 2022. Initially, the halt was ascribed to additional security measures implemented in light of supposed cyber attacks.
Following its operational stoppage, AAX's previous CEO, Thor Chan, and a member of the board, Haoming Liang, were apprehended by the Hong Kong police in 2022 for attempting to avoid capture. Intriguingly, the founder of AAX—whose identity remains undisclosed—is alleged to still be evading authorities and has supposedly absconded with 230 million Hong Kong dollars ($29.41 million) of user funds along with private keys to exchange wallets. Presently, the exchange's website is non-operational and there has been no activity on its official Twitter account since November 2022.
Published At
2/20/2024 9:26:46 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.