Two AAX employees arrested by Hong Kong police, identities potentially exposed; mastermind still at large, $30 million USD involved

The centralized exchange AAX, which stopped operating in mid-November citing maintenance reasons, has frozen funds of millions of users worldwide, who may need to prepare for the possibility of not being able to recover their assets. However, there has been a recent development in this case, as the Hong Kong police have arrested two individuals involved and seized their assets.

AAX Suspends Operations

The centralized exchange AAX has reportedly been affected by the bankruptcy of FTX. It suspended its platform operations on 11/12 for system maintenance and updates, and on 11/16, it released a statement claiming that AAX is raising funds and will continue operations if successful; otherwise, it will initiate legal proceedings for liquidation.

However, to date, AAX has not provided any further updates. Not only have its employees been laid off, but the platform services have also been halted, leaving users unable to access AAX to view their asset balances.

Latest Developments: Two Men Arrested by Hong Kong Police

According to a report by Hong Kong 01 here, the Hong Kong police have received reports from 337 victims worldwide, with losses totaling HK$98 million (approximately $12.55 million USD). The Commercial Crime Bureau of the Hong Kong police announced in a press conference yesterday that two men, aged 37 and 44, have been arrested. One is a former employee, and the other is a platform manager, both involved in making platform decisions, spreading false information, and using illegal means to halt platform operations.

Sources revealed that the two arrested individuals are Liang Haoming, Director, Shareholder, and CEO of Viga Capital, and Thor Chan, the founder and former CEO of AAX. However, the mastermind behind the scenes is currently absconding with AAX's wallet and private keys, leaving Hong Kong with a staggering $30 million.

On a positive note, Senior Inspector Wong Chung-lai of the Hong Kong police stated that the $30 million has not been misappropriated, showing no signs of loss. The police will continue to trace the flow of funds. Additionally, the police have frozen bank accounts and seized real estate of the related companies and individuals involved, totaling approximately $7.3 million.