Popular crypto exchange founder sued after users lose over $200M

The laminitis of Tokenize Xchange is facing a suit implicit users losing millions of dollars, The Business Times reported connected Nov. 28.

A full of 272 erstwhile customers of the crypto trading speech are suing Hong Qi Yu, the laminitis and CEO of AmazingTech, the genitor institution of Tokenize. The suit besides mentions COO Erin Koo Kee Hoon who is Hong's wife.

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As per a study filed by court-appointed interim judicial managers successful September, AmazingTech owed the users astir $205.34 cardinal but its realisable assets stood astatine astir $2 cardinal only.

The suit claims that Hong and Koo have fraudulently misappropriated the remaining $203.34 million.

The claimants are present claiming $46.65 cardinal successful damages — an magnitude they assertion they held connected the Tokenize Xchange either connected Jul 31, 2025, oregon erstwhile they attempted to retreat their funds.

“The interim judicial managers’ study that AmazingTech appears to beryllium holding little than 1 per cent of customers’ full assets came arsenic a heavy daze to my clients,” Suresh Divyanathan, Dauntless Law Chambers MD and the pb lawyer successful complaint of the case, told the publication.

“They are incensed that practically each their assets connected Tokenize Xchange person disappeared. Some of them person mislaid their full beingness savings.”

The suit claims that Hong and Koo made respective deceptive actions.

It said Tokenize Xchange didn't facilitate trading done a cardinal bounds bid publication but allegedly executed trades straight betwixt itself and the users.

It besides said the central bounds bid book displayed connected Tokenize Xchange allegedly belonged to the Binance crypto exchange, with a mark-up connected the spread.

It alleged the crypto speech made a mendacious content that it had a voluminous bid book.

It besides claims that Tokenize Xchange commingled institution funds and idiosyncratic funds contempt its declaration promising to clasp idiosyncratic funds separately successful a trust.

The lawsuit, successful particular, mentions an announcement the institution made successful July this twelvemonth that it had secured a licence successful Labuan and was successful the “final phase” of securing a licence successful the Abu Dhabi planetary market.

But the interim judicial manager’s study mentions the institution didn't implicit the acquisition of the Labuan entity owed to fraud allegations against Hong and nary advancement took spot connected the Abu Dhabi program beyond the preliminary stage.

Nichol Yeo and Clement Julien Tan of Nine Yards Chambers confirmed to The Business Times that they volition correspond Hong successful the ineligible battle. A antithetic squad volition reportedly correspond Koo.