An inactive exchange in Hong Kong has initiated the transfer of funds from its wallets to decentralized and centralized platforms in order to evade Anti-Money Laundering (AML) controls, according to blockchain analytics firm Cyvers Alerts. Starting early this month, over 24,000 Ether (ETH), valued at $55.6 million, was transferred from the Atom Asset (AAX) Exchange wallets. Analysts noted that the observed patterns indicate an attempt to circumvent AML measures, and some funds from the exchange have been blacklisted by Tether.
Prior to this discovery, the last known transactions involving AAX Exchange wallets occurred in October 2023 and November 2022. AAX was once one of Hong Kong’s largest cryptocurrency exchanges, boasting more than 2 million users.
In November 2022, shortly after crypto exchange FTX filed for bankruptcy, AAX also suspended withdrawals and closed all social channels due to counterparty risk exposure. On December 16, 2022, both the AAX website and app ceased to function. Initially, AAX attributed the freeze to security measures in response to alleged malicious attacks.
After the shutdown, AAX’s former CEO Thor Chan and board member Haoming Liang were arrested by Hong Kong police in 2022. However, the founder of AAX, whose identity remains unknown, is reportedly still evading authorities with 230 million Hong Kong dollars ($29.41 million) of users’ funds and private keys granting access to exchange wallets. As of now, the exchange’s website is offline, and its Twitter account has not been updated since November 2022.
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