Ethereum

Analysts at Cyvers Alerts say an unknown entity moved over $55 million worth of Ethereum from wallets, associated with bankrupt crypto exchange AAX. 
In <a href="https://twitter.com/CyversAlerts/status/1759923312036073952" target="_blank" rel="noreferrer noopener">an X thread</a> on Feb. 20, blockchain analysts at Cyvers Alerts published an investigation revealing anomaly transactions originated from wallets allegedly owned by <a href="https://crypto.news/tag/aax/" target="_blank" rel="noreferrer noopener">AAX</a>, a crypto exchange that faced scrutiny after halting all withdrawals just two days following <a href="https://crypto.news/ftx-files-for-chapter-11-bankruptcy-taking-down-about-130-companies-with-it/" target="_blank" rel="noreferrer noopener">FTX’s bankruptcy</a>. 
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 🚨INVESTIGATION🚨 🧵Our system has detected suspicious transactions involving <a href="https://twitter.com/AAXExchange?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">@AAXExchange</a>. It's a Hong Kong-registered exchange where CEO Thor Chan resigned in May '21. Just two days after <a href="https://twitter.com/FTX_Official?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">@FTX_Official</a> filed for bankruptcy, <a href="https://twitter.com/hashtag/AAX?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener">#AAX</a> halted all withdrawals on Nov 13 '22, wiping its…— 🚨 Cyvers Alerts 🚨 (@CyversAlerts) <a href="https://twitter.com/CyversAlerts/status/1759923312036073952?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">February 20, 2024</a>
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According to the investigation, over $55.5 million worth of Ethereum (<a href="https://crypto.news/price/ethereum/" target="_blank" rel="noreferrer noopener">ETH</a>) was moved from AAX wallets in early February in a move orchestrated by an unidentified entity. The transfers appeared to be aimed at laundering funds through decentralized exchange (<a href="https://crypto.news/tag/dex/" target="_blank" rel="noreferrer noopener">DEX</a>) platforms like UmbraCash and 1inch. 
 You might also like: <a href="https://crypto.news/aax-crypto-exchange-deletes-youtube-channel-as-trouble-brews/"> AAX crypto exchange deletes YouTube channel as trouble brews </a> 
Cyvers Alerts noted that the entity executed a series of steps, converting ETH to Wrapped ETH (WETH) and then to the USDT stablecoin, before channeling approximately $20 million worth of crypto to the <a href="https://crypto.news/tag/tron/" target="_blank" rel="noreferrer noopener">TRON</a> blockchain via SwftCoin, a cross-chain service. 
Analysts emphasized that these transactions exhibited patterns suggestive of attempts to bypass anti-money laundering measures. Furthermore, Cyvers Alerts revealed that certain funds stemming from AAX had been blacklisted by <a href="https://crypto.news/tag/tether/" target="_blank" rel="noreferrer noopener">Tether</a> Inc., the issuer of USDT. The remaining funds were reportedly deposited into centralized exchanges Bybit and MEXC. As of press time, UmbraCash, 1inch, Bybit, and MEXC have not issued public statements regarding the matter. 
Following the collapse of FTX, AAX initially attributed <a href="https://crypto.news/aax-exchange-suspends-all-operations-to-restore-user-data/" target="_blank" rel="noreferrer noopener">the suspension of its activities</a> and withdrawals to technical abnormalities, citing security concerns. However, subsequent developments saw Ben Caselin resign from his position as vice president of global marketing and communications at AAX, citing <a href="https://twitter.com/BenCaselin/status/1597117107560656897" target="_blank" rel="noreferrer noopener">concerns</a> over the exchange’s operational transparency. 
 Read more: <a href="https://crypto.news/aax-exchange-suspends-all-operations-to-restore-user-data/"> AAX exchange suspends all operations to restore user data </a>

Bankrupt crypto exchange AAX allegedly started laundering 24,000 ETH

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