2 executives of crypto exchange AAX arrested in Hong Kong: Report

Hong Kong constabulary arrested 2 executives of the crypto speech AAX accused of fraud and misleading the police, according to section media reports. 

The erstwhile CEO of AAX, Weigao Capital Liang Haoming, and the laminitis of AAX, Thor Chan, were arrested connected Dec. 23. Local authorities accused the company's caput of declaring "system maintenance" arsenic an excuse to hold customers from withdrawing assets amid liquidity issues.

One of the executives besides lied to the constabulary astir the timeline of his activities successful the company, deliberately misleading enforcement authorities, the constabulary probe revealed.

Two slope accounts of AAX arsenic good arsenic the executive's slope accounts and properties person been frozen. A 3rd enforcement who fled overseas with an AAX wallet and backstage keys that constabulary judge incorporate astir $30 cardinal successful integer assets. His properties successful Hong Kong were seized by the constabulary arsenic well. As portion of the investigation, Hong Kong authorities are moving intimately with overseas investigators to hint the funds.

The Hong Kong-based level has been unopen down since mid-November for "system maintenance," leaving 2 cardinal registered users without entree to their funds. Since then, section constabulary person received implicit 337 reports from victims successful China, Taiwan, Italy, and France.

Withdrawals were halted by AAX connected Nov. 14, citing a glitch successful the exchange's strategy upgrade. The institution assured its assemblage that the withdrawal halt had thing to bash with the illness of crypto speech FTX, arsenic rumors had suggested. 

A fewer weeks later, AAX's vice president for planetary selling and communications announced his resignation. Ben Caselin confirmed connected Twitter that helium had near the crypto exchange, and stated that contempt his efforts to combat for the community, the initiatives projected were not accepted. He described his communications relation arsenic "hollow."

In Nigeria, the shutdown of AAX operations led to users harassing erstwhile employees of the crypto exchange's Lagos office.