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.
Source: https://cryptoslate.com/two-suspects-arrested-in-hong-kong-for-aax-fraud/