HK police arrest two men in crypto exchange AAX-related case

Police in Hong Kong arrested two men on Friday in a case related to cryptocurrency exchange AAX and has frozen the company’s bank account.

One of the people arrested “manages the platform”, Lee Wai-chung, an officer at the commercial crime bureau, said at a news conference.

Local media reported that one of the people was Thor Chan, founder and ex-chief executive officer of AAX.

The public relations department of the police declined to confirm the identity of the arrested persons.

Cryptocurrency exchange AAX suspended withdrawals in November, citing a glitch in a system upgrade.

Police’s investigation found that there were liquidity issues at the company, but the mastermind and the people arrested “used data maintenance as an excuse to prevent users from withdrawing fund”, Lee said.

The case involves HK$98 million of total reported loss, according to a press release from the police.

Bank accounts of AAX and the people who’ve been arrested have been frozen.

SOURCE: NEWS AGENCIES