A Hong Kong exchange that is no longer operational has initiated the transfer of funds from its wallets to various decentralized and centralized platforms. Allegedly, this action is aimed at circumventing Anti-Money Laundering (AML) controls.
According to reports from blockchain analytics firm Cyvers Alerts on February 20, more than 24,000 Ethereum valued at $55.6 million have been moved from wallets associated with the Atom Asset (AAX) Exchange since the beginning of this month.
Analysts noted that the observed transaction patterns suggest an effort to evade AML measures. Additionally, it was mentioned that some of the funds originating from the exchange have been flagged by Tether.
Just after 48 hours FTX declared bankruptcy, AAX also suspended withdrawals and erased all of its social media presence, citing exposure to counterparty risk. By December 16, 2022, both its website and app were no longer operational.
