AAX, a crypto exchange reportedly facing bankruptcy, accused of initiating the laundering of 24,000 ETH.
An investigation conducted by blockchain analysts at Cyvers Alerts has uncovered suspicious transactions involving wallets linked to the bankrupt crypto exchange AAX. The analysts discovered that an unidentified entity moved more than $55.5 million worth of Ethereum from AAX wallets in early February. The purpose of these transfers appeared to be money laundering, as the funds were channeled through decentralized exchange platforms like UmbraCash and 1inch. The entity took several steps to convert the Ethereum into Wrapped ETH (WETH) and then into the USDT stablecoin before transferring approximately $20 million worth of crypto to the TRON blockchain via SwftCoin. These transactions showed clear patterns that suggested attempts to bypass anti-money laundering measures. Additionally, Cyvers Alerts found that some of the funds originating from AAX had been blacklisted by Tether Inc., the issuer of USDT. The remaining funds were reportedly deposited into centralized exchanges Bybit and MEXC. So far, UmbraCash, 1inch, Bybit, and MEXC have not released any public statements regarding the situation. AAX initially attributed the suspension of its activities and withdrawals to technical abnormalities and security concerns following the collapse of FTX. However, the resignation of Ben Caselin, the vice president of global marketing and communications at AAX, raised concerns about the exchange’s operational transparency.
