The mastermind behind the AAX digital currency platform’s collapse has been captured. After evading authorities for 20 months, he has now been apprehended.
Arrest Details
According to Oriental Daily News, authorities arrested the 39-year-old man on July 18 as he re-entered Hong Kong. Consequently, he faces charges related to a $26 million fraud and will appear in Eastern Law Court on July 20.
AAX’s Collapse and $26 Million Fraud
AAX, a local cryptocurrency exchange, ceased operations in November 2022. As a result, over 300 customers could not access approximately $12.8 million in assets. Investigators found that false information and illegal practices led to the shutdown, which prompted an extensive investigation.
On December 23, 2022, police arrested two local men on suspicion of fraud. Furthermore, one of them was also accused of misleading officers. During the investigation, authorities froze about $256,100 in bank accounts and seized properties worth $7 million.
Later, investigators discovered that the mastermind behind AAX’s collapse had already fled Hong Kong with his crypto wallet and private keys. He managed the platform and orchestrated its downfall through deceitful actions. After leaving Hong Kong in November 2022, he was captured upon his return. To date, 890 victims have reported losses totaling $26 million.
Hong Kong SFC Cautions Against Unlicensed Exchanges
Recently, the Hong Kong Securities and Futures Commission (SFC) identified seven crypto exchanges operating without proper authorization. Consequently, these exchanges have been added to the SFC’s Alert List. This public record, maintained since January 2020, now includes 39 entries. This year alone, the SFC has flagged 28 unlicensed exchanges. Therefore, the Alert List helps investors avoid unauthorized entities operating in the region.
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