A now-defunct exchange in Hong Kong has initiated the transfer of funds from its wallets to both decentralized exchanges and centralized platforms, purportedly as a means to evade Anti-Money Laundering (AML) regulations. According to blockchain analytics firm Cyvers Alerts, approximately 24,000 Ether (ETH), valued at $55.6 million, were moved from the Atom Asset (AAX) Exchange wallets since the beginning of this month. The analysts noted that “the observed patterns suggest that the address is attempting to circumvent AML measures,” and added that “some funds from the exchange have also been blacklisted by Tether.”
The last recorded transactions involving AAX Exchange wallets were made in October 2023 and November 2022, prior to this recent discovery. AAX was once one of the largest crypto exchanges in Hong Kong, boasting over 2 million users. However, on November 13, 2022, just two days after crypto exchange FTX filed for bankruptcy, AAX also suspended withdrawals and closed all its social media channels due to counterparty risk exposure. Cyvers stated that “on December 16, 2022, both its website and app ceased functioning,” and initially, AAX attributed the freeze to security measures in response to alleged malicious attacks.
In 2022, following its shutdown, AAX’s former CEO Thor Chan and board member Haoming Liang were apprehended by the Hong Kong police. However, the founder of AAX, whose identity remains unknown, is purportedly still at large and in possession of 230 million Hong Kong dollars ($29.41 million) of users’ funds, as well as the private keys granting access to the exchange wallets. At present, the exchange’s website is offline, and its Twitter account has not been updated since November 2022.
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