Two suspects arrested in Hong Kong for AAX fraud Two suspects arrested in Hong Kong for AAX fraud
The AAX exchange declared bankruptcy on November, and returned only half of its users' funds.
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Updated: Dec. 23, 2022 at 1:57 pm UTC
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Local sources reported that two men who were involved with the AAX investigation were arrested in Hong Kong on Dec. 23.
According to local law enforcement, the individuals were arrested for suspicions of fraud and misleading police officers.
AAX bankruptcy
Weeks after the FTX collapse, on Nov. 28, AAX exchange’s Vice President Ben Caselin announced his resignation. Caselin said he resigned because he disagreed with the recent company decisions.
Reportedly, Caselin disagreed with AAX’s decision to declare bankruptcy and liquidate all assets. However, a warning accompanied the company’s decision, stating that the employees could only receive their salaries for November, and users could only retrieve half of their assets.
Local news sources indicated that AAX users have lost over 100 million yuan in total, which equates to $14.3 million.
FTX fallout’s impact on individual investors
A recent report that examined the impact of the significant events in 2022 revealed that FTX had the most considerable effect on all who went bankrupt or collapsed.
The report considered Terra-Luna’s collapse and the bankruptcies of Voyager, BlockFi, Celsius, Mt.Gox, and FTX.
According to the numbers, the FTX fallout affected over 1 million investors, which is considerably higher than the 600,000 and 572,000 investors affected by Celsius and BlockFi bankruptcies, respectively.
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Zeynep Geylan
Zeynep is an academic who turned to crypto in 2018. Originating in social sciences, she is especially interested in the social impact of blockchain and cryptocurrencies and strongly believes in their transmuting power.
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AAX Token
$0.65932
As a token based on the Ethereum network, AAX Token (AAB) is an integral part of AAX, providing special benefits to users, and a means to be part of the growth of the exchange.
FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.
