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Cryptocurrency investors at AAX are seeking senior management positions at the exchange after last month’s decision to suspend withdrawals sparked a backlash among users.
The Hong Kong-based crypto exchange, which once boasted two million users, made a big announcement in 2019 that it was the first digital asset exchange. Uses London Stock Exchange trading technology.
However, AAX, which stands for Atom Asset Exchange, suspended customer withdrawals on Nov. 13 for what it called a temporary “scheduled maintenance” to “address a critical vulnerability.” Exchange employees claimed the outage was due to liquidity issues.
Searches conducted by thousands of users through multiple Telegram messaging groups underscored growing investor desperation in the unregulated industry. Unable to process withdrawals, staff told the Financial Times they were disconnected from the company’s email system.
The city’s financial regulator, the Hong Kong Monetary Authority, said the exchange did not fall under its mandate, but the Securities and Futures Commission said it did not comment on individual cases. AAX is not one of the few crypto asset trading platforms licensed by SFC.
Hong Kong is a cryptocurrency hub, home to the offices of several groups, including Sam Bankman-Fried’s FTX exchange and his cryptocurrency trading firm Alameda. Just before FTX collapsed, Hong Kong Suggests plans to legalize retail trading of crypto assets.
AAX vice president Ben Caselin said on Twitter that he had resigned on November 28, saying he had lost faith in management. Caselin, one of his executives seeking to recover funds from AAX users, told the FT he could not help.
He characterized his previous role as a “spokesperson” who was not involved in the company’s finances. Caselin added that he “felt very unsafe” in Hong Kong, but declined to disclose his whereabouts.
After withdrawals were suspended, AAX users set up Telegram groups to exchange information and post leaked photos of senior executives’ personal ID documents in an attempt to locate them.
“We started to realize that there was something suspicious behind all this, so we did our own research,” said Mike Ong, a finance executive in Singapore who is part of the group. Many core admins began removing their online presence during that period of time when they said they were doing
In November, AAX users visited our Hong Kong office and found them empty. Ong visited a co-working space in Singapore but found no employees. The Telegram group now has thousands of members, including former staff who still have money on the exchange.
Afterwards, some employees were told by management that Cryptocurrency Holders withdrew funds from the exchange in the wake of the FTX crisis.
AAX did not respond to requests for comment.
In particular, users are trying to reach out to one of the exchange’s main investors, Victor Su, who was previously based in Hong Kong and is considered a senior executive.
Su refused to disclose his whereabouts to the FT and threatened legal action for “unrealistic reports” made public against him.
“I don’t have one and never will. [abscond]I believe the law will give the best answer,” Sue wrote in a text message Wednesday. did not.
“We will continue to pressure senior management through us. [Telegram] As one of the user survey organizers said: The group has also tried to report concerns to police in Singapore, Taiwan and Hong Kong, but such efforts have been fruitless, Caselin said.
“People have asked me why I didn’t call the Hong Kong police,” he wrote on Twitter. First of all, it is useless because AAX is a Seychelles-based exchange, even though its roots are in Hong Kong.
