The Commercial Affairs Department (CAD) is currently investigating AmazingTech, which operates cryptocurrency trading platform, Tokenize Xchange, announced the Monetary Authority of Singapore (MAS) on Aug 1. This includes an offence of fraudulent trading under Section 238(4) of the Insolvency, Restructuring and Dissolution Act 2018.
The news comes after Tokenize Xchange announced, on July 20, that it will be ceasing its operations in Singapore after failing to obtain a major payment institution (MPI) licence to provide digital payment token services.
According to MAS’s statement, the central bank said it received several customer complaints against the cryptocurrency platform for “delays in processing withdrawals of monies and digital payment tokens to customers”. MAS has asked AmazingTech to solve these concerns and take steps to return the monies and digital payment tokens to its customers.
MAS adds from its engagements with AmazingTech, the central bank subsequently found indications that AmazingTech did not have enough assets to meet its customers’ claims and that it might not have separated its customers’ assets from AmazingTech’s assets.
“MAS also found indications that ATPL might have made false representations to MAS regarding the segregation of its customers’ assets, when AmazingTech applied for a MPI licence,” the statement continues. “MAS then referred ATPL to CAD for investigations.”
Tokenize Xchange's founder and CEO Hong Qi Yu has been charged in court with fraudulent trading under Section 238(4). The offence carries an imprisonment term not exceeding seven years, a fine or both.
See also: When will Singapore see its first crypto exchange listing?
Police investigations are ongoing.
