The creator of the collapse of digital currency platform AAX has been arrested after 20 months of evading law enforcement authorities.
According to a recent Oriental Daily News report, the 39-year-old man was arrested on July 18 after re-entering Hong Kong. he was scheduled to appear before an Oriental court on July 20, where he was to hear charges related to a $26 million fraud.
AAX collapse and $26 million fraud
Local cryptocurrency exchange AAX ceased operations in November 2022, leaving more than 300 customers unable to withdraw assets worth some $12.8 million. Authorities discovered that the shutdown was orchestrated by false information and illegal methods, prompting an extensive investigation.
on December 23, 2022, law enforcement authorities arrested two local men on fraud charges, with one of them also suspected of misleading police officers.
During the investigation, law enforcement froze assets worth a total of about $256,100 in the bank accounts of the company involved and the suspects, as well as real estate worth $7 million.
It was later discovered that the AAX creator behind the scheme had already fled Hong Kong with his crypto wallet and private keys. This person managed the digital currency platform and orchestrated its collapse through false information and illegal means.
The man left Hong Kong in November 2022 and was arrested upon re-entry. As of today, law enforcement has received reports from 890 victims totaling $26 million.
Hong Kong SFC warns against stock markets
Recently, the Hong Kong Securities and Futures Commission (SFC) identified seven cryptocurrency exchanges operating without authorization and added them to its Alert List for operating in the region without the necessary licenses.
A public registry, called the Alert List, has been in place since January 2020. on July 5, seven new unlicensed exchanges were added, bringing the total number of entries to 39. This year alone, 28 unlicensed cryptocurrency exchanges have been flagged .
