Bankrupt crypto exchange AAX allegedly started laundering 24,000 ETH

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Analysts at Cyvers Alerts say an unknown entity moved over $55 million price of Ethereum from wallets, related to bankrupt crypto change AAX.

In an X thread on Feb. 20, blockchain analysts at Cyvers Alerts revealed an investigation revealing anomaly transactions originated from wallets allegedly owned by AAX, a crypto change that confronted scrutiny after halting all withdrawals simply two days following FTX’s bankruptcy.

In accordance with the investigation, over $55.5 million price of Ethereum (ETH) was moved from AAX wallets in early February in a transfer orchestrated by an unidentified entity. The transfers gave the impression to be geared toward laundering funds via decentralized change (DEX) platforms like UmbraCash and 1inch.

Cyvers Alerts famous that the entity executed a collection of steps, changing ETH to Wrapped ETH (WETH) after which to the USDT stablecoin, earlier than channeling roughly $20 million price of crypto to the TRON blockchain through SwftCoin, a cross-chain service.

Analysts emphasised that these transactions exhibited patterns suggestive of makes an attempt to bypass anti-money laundering measures. Moreover, Cyvers Alerts revealed that sure funds stemming from AAX had been blacklisted by Tether Inc., the issuer of USDT. The remaining funds had been reportedly deposited into centralized exchanges Bybit and MEXC. As of press time, UmbraCash, 1inch, Bybit, and MEXC haven’t issued public statements relating to the matter.

Following the collapse of FTX, AAX initially attributed the suspension of its activities and withdrawals to technical abnormalities, citing safety considerations. Nonetheless, subsequent developments noticed Ben Caselin resign from his place as vp of worldwide advertising and communications at AAX, citing concerns over the change’s operational transparency.

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