The platform has been shut down since mid-November, citing "system maintenance," and has left 2 million registered users without access to their funds. Since the shutdown, local police have received over 337 reports of victimization from users in China, Taiwan, Italy, and France.
The arrests of Haoming and Chan come after AAX halted withdrawals on November 14th due to a glitch in the exchange's system upgrade. Despite rumors linking the withdrawal halt to the collapse of another crypto exchange, FTX, AAX assured its community that the two events were unrelated.
In the wake of the shutdown, AAX's vice president for global marketing and communications, Ben Caselin, resigned and described his role as "hollow." The shutdown of AAX's operations in Nigeria also led to harassment of former employees at the exchange's Lagos office.
Police Freeze AAX Bank Accounts and Properties of Executives
As part of the investigation into the fraud and misleading police charges against Haoming and Chan, two bank accounts belonging to AAX, as well as the executives' personal bank accounts and properties, have been frozen. A third executive reportedly fled overseas with an AAX wallet containing approximately $30 million in digital assets, and his properties in Hong Kong have been seized by police.
AAX Users Harassed and Left Without Access to Funds
The shutdown of AAX has left 2 million registered users without access to their funds, and local police have received over 337 reports from victims in China, Taiwan, Italy, and France since the shutdown. In Nigeria, the shutdown of AAX's operations led to users harassing former employees of the crypto exchange's Lagos office.
Many users have expressed frustration and anger over the shutdown and the lack of access to their funds. It is unclear at this time when or if the platform will be restored or what will happen to the users' assets.
Former AAX VP Resigns, Describes Role as "Hollow"
In the wake of the shutdown, AAX's vice president for global marketing and communications, Ben Caselin, resigned and took to Twitter to confirm his departure. He stated that despite his efforts to fight for the community, the initiatives he proposed were not accepted, and he described his communications role as "hollow."
It is unclear at this time what impact Caselin's resignation will have on the future of AAX or the resolution of the current investigation.
Conclusion
The arrests of AAX executives Liang Haoming and Thor Chan on charges of fraud and misleading police, as well as the freezing of AAX bank accounts and the properties of the executives, have caused the Hong Kong-based crypto exchange to shut down. The platform has been offline since mid-November, leaving 2 million registered users without access to their funds and resulting in over 337 reports of victimization from users in China, Taiwan, Italy, and France. AAX's vice president for global marketing and communications has also resigned, describing his role as "hollow." It is unclear at this time when or if the platform will be restored or what will happen to the users' assets.
