These funds could be used for money laundering through decentralized platforms like UmbraCash and 1inch, Cyvers Alerts analysts suggested.
Unknown persons converted ETH into “wrapped ether” (wETH) and then into USDT stablecoins. These funds were then sent to the TRON blockchain through the SwftCoin cross-chain service. Analysts emphasized that these actions may indicate attempts to circumvent anti-money laundering (AML) rules.. In addition, some of the funds received from AAX were blacklisted by Tether, the issuer of USDT stablecoins.. The remaining funds were placed on the centralized exchanges Bybit and MEXC.
Hong Kong's AAX closed customer withdrawals in November 2022, just two days after crypto exchange FTX began bankruptcy proceedings.
AAX attributed the suspension of its operations and withdrawals to technical faults, citing security concerns. However, AAX Vice President Ben Caselin later left his post amid suspicions of the exchange's opacity.. In December, angry AAX customers vandalized the exchange's offices in Lagos, beating staff and demanding refunds.