According to local media sources, two <a href="https://www.cryptoknowmics.com/news/aax-executive-quits-crypto-exchange-amid-current-functional-halt">AAX</a> executives were <a href="https://www.hk01.com/%E7%AA%81%E7%99%BC/850338/%E8%99%9B%E6%93%AC%E8%B2%A8%E5%B9%A3%E4%BA%A4%E6%98%93%E5%B9%B3%E5%8F%B0aax%E5%80%92%E9%96%89-%E8%AD%A6%E6%8B%98%E5%85%A9%E7%94%B7%E6%B6%89%E6%AC%BA%E8%A9%90-%E4%B8%BB%E8%85%A6%E6%8D%B22-3%E5%84%84%E6%BD%9B%E9%80%83%E6%B5%B7%E5%A4%96" target="_blank" rel="nofollow noopener">detained</a> by the Hong Kong authorities on digital asset fraud allegations and misrepresenting the police.
<h2>Two AAX Executives Detained For Digital Asset Fraud</h2>
On December 23, police detained former AAX CEO Thor Chan and Weigao Capital CEO Liang Haoming. They were accused by local authorities of using maintenance procedures as a pretext to prevent consumers from withdrawing assets when there were <a href="https://www.cryptoknowmics.com/news/gemini-creditor-committee-unveils-plan-to-address-liquidity-problems">liquidity problems</a>.

Additionally, one of the executives is accused of intentionally deceiving law authorities by lying to them about the timing of his <a href="https://www.cryptoknowmics.com/news/forum3-raises-10m-to-bring-digital-assets-to-brands-loyalty-programs">digital asset</a> fraud activities while working for the firm.
<h2>Collaboration of HK Police and Foreign Investigators</h2>
The executive's residences and two of AAX's bank accounts have all been blocked. According to reports, a third executive escaped the country with an AAX wallet and secret keys, which the authorities estimate to contain about $30 million in digital assets. The police took possession of his Hong Kong homes. <a href="https://www.cryptoknowmics.com/news/hong-kong-authorities-to-launch-consultation-on-crypto-access">Hong Kong police</a> and foreign investigators are collaborating extensively to trace the cash as part of the digital asset fraud.

Due to maintenance services, the Hong Kong-based network has been offline since the middle of November, preventing 2 million registered customers from accessing their money. Since then, victims in China, Taiwan, Italy, and France have reported over 337 incidents to the local authorities.
<h2>Departure of AAX Vice President</h2>
On November 14, AAX stopped accepting withdrawals, claiming a bug in the exchange's system update. The firm reassured its users that, contrary to reports, the withdrawal freeze was not associated with the demise of the <a href="https://www.cryptoknowmics.com/news/sec-identifies-ftx-exchanges-ftt-token-as-a-security">cryptocurrency exchange FTX</a>.

The vice president of worldwide marketing and communications for AAX made his departure known a few weeks later. Ben Caselin announced his departure from the cryptocurrency exchange on Twitter, explaining that despite his attempts to advance the community, his ideas were rejected. He called his communications position "empty."

Hong Kong Detains Two AAX Executives For Digital Asset Fraud

Hong Kong authorities detained two executives of the cryptocurrency exchange AAX on digital asset fraud allegations and misrepresent the police.

Gungun is an enthusiastic writer that likes to create content for various aspects of the blockchain and crypto industry. She carries out extensive research and provides readers with informative and high-quality material.

Hong Kong Detains Two AAX Executives For Digital Asset Fraud

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