Hong Kong Arrests Two Suspects Related To AAX Exchange

Key Points:

• On December 23, two males connected to the AAX probe were taken into custody in Hong Kong.

• The people were detained on fraud and “misleading police officer” accusations, according to local law enforcement.

• The action was taken shortly after the exchange, citing a problem in a system upgrade, stopped customer withdrawals, and removed all of its social media accounts.

According to a police press conference, the commercial crime investigation bureau of Hong Kong detained two local males on Friday for their alleged involvement in digital asset fraud on Atom Asset Exchange (AAX).

On December 23, two males, ages 37 and 44, were taken into custody; the first was also charged with “misleading police officers,” while the second was accused of fraud.

The Commercial Crime Bureau of the Police held a press conference today on the arrest of a fraud case involving a cryptocurrency trading platform. It is reported that the trading platform involved the Hong Kong crypto exchange AAX.

During the press briefing, Kung Hing-fun, a member of the Commercial Crime Bureau’s Fraud division, remarked:

“Through false information, news, and illegal means, the trading platform stopped operating, so investors have failed to get back their virtual assets.”

Kung noted that the current investigation might lead to additional arrests.

Authorities claim that before the exchange’s senior management left Hong Kong with the company’s cryptocurrency wallets and secret keys, it suspended user withdrawals for “fault and maintenance.”

FTX, the world’s second-largest virtual currency trading platform, filed for bankruptcy protection, triggering a wave of closures.

As Coincu reported, AAX suddenly closed down in the middle of last month, high-level executives jumped ship, employees were dismissed, investors were unable to withdraw assets, and there were thousands of people in the online suffering group. Some claimed that the loss exceeded one million yuan, and it is estimated that the total amount involved exceeded 100 million yuan.

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Harold

Coincu News