- In reference to AAX’s sudden closure in 2022, 191 victims reported losses of HK$81 million.
- Police allege that the operator withdrew HK$633 million in cryptocurrency after the service was suspended.
- The 39-year-old suspect faces costs of theft and fraud because the investigation continues.
Authorities have launched new particulars in regards to the 2022 collapse of cryptocurrency change AAX, together with the losses and the alleged mastermind behind the shutdown.
The Hong Kong Industrial Crime Bureau introduced that 191 victims have up to now made statements, and the full damages amounted to roughly HK$81 million. Investigators additionally allege that after AAX ceased operations in November 2022, the platform operator withdrew roughly HK$633 million value of digital foreign money.
AAX sudden shutdown
In mid-November 2022, AAX introduced that it might briefly droop its companies attributable to “system upkeep and upgrades.” This measure prevents customers from shopping for, promoting, transferring, or withdrawing digital belongings.
On the time, the change had about 2 million registered customers. By December 16, 2022, the platform had ceased operations fully. Prospects can not log into their accounts or verify their balances, the corporate’s North Level workplace in Hong Kong has reportedly been closed, and staff have reportedly been laid off or retired.
arrest and prosecution
Authorities beforehand arrested two males in reference to the incident. The primary is Mr. Leung Ho-ming, recognized as a director, shareholder and CEO of Vigo Capital, and described because the platform supervisor. Soe Chan, founder and former CEO of AAX, was the second.
Nonetheless, police allege that the primary orchestrator of the scheme was So Wai Yi, a 39-year-old native man concerned in managing the buying and selling platform.
Based on investigators, the suspect left Hong Kong in November 2022, when AAX introduced “system upkeep.” He was then arrested when he returned to Hong Kong on July 18, 2024.
After in search of authorized recommendation, the 39-year-old was charged with three counts of theft and one depend of fraud.
Suspicion of misrepresentation
Based on a police investigation, the change was already going through severe money move issues when AAX claimed it was present process system upkeep. Investigators consider the upkeep announcement was used to forestall clients from withdrawing their funds, and deceptive updates have been posted on the web site.
The investigation continues, with authorities tracing the place the funds went and figuring out who was concerned. The AAX chapter, which allegedly concerned a whole bunch of victims and a whole bunch of hundreds of thousands of individuals with their belongings, is seen as one of many main cryptocurrency fraud circumstances in Hong Kong in recent times.
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