$56 million shifted from a ATOM following the departure of executives

The Atom Asset Exchange was down in November 2022 after more than 2 million accounts were registered.

Allegedly, in an effort to evade anti-money laundering (AML) regulations, a now-defunct Hong Kong exchange has started transferring its customers’ money to other decentralized exchanges and centralized platforms.

Over 24,000 ETH, valued at $55.6 million, have been withdrawn from Atom Asset (AAX) Exchange wallets since the beginning of this month, according to a report by the blockchain analytics firm Cyvers Alerts on February 20. The location seems to be trying to evade anti-money-laundering systems, according to the experts’ findings. “Furthermore, Tether has blocked certain money that came from the exchange.”

October 2023 and November 2022 were the final reported transactions using AAX Exchange wallets prior to their discovery. With more than 2 million customers, AAX was a leading Hong Kong cryptocurrency exchange prior to its demise.

Due to counterparty risk exposure, AAX also stopped withdrawals and deleted all social channels on November 13, 2022, two days after cryptocurrency exchange FTX declared bankruptcy. The website and app stopped working on December 16, 2022, according to Cyvers. “At first, AAX said that the freeze was because of security measures put in place to prevent ill-will.”

Police in Hong Kong detained former AAX CEO Thor Chan and board member Haoming Liang in 2022 following the company’s closure on suspicion that they tried to escape the city. Nevertheless, AAX’s unnamed creator is supposedly still at large, with private keys to exchange wallets and 230 million Hong Kong dollars ($29.41 million) in customer funds. There has been no activity on the exchange’s Twitter account since November 2022, and the website remains down as of this writing.

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