In a recent investigation by blockchain analysts at Cyvers Alerts, it has been revealed that an unknown entity transferred over $55 million worth of Ethereum from wallets associated with the troubled crypto exchange AAX. This move comes amidst scrutiny faced by AAX after halting withdrawals following FTX’s bankruptcy.

The investigation uncovered that the entity orchestrated the movement of Ethereum from AAX wallets to decentralized exchange platforms like UmbraCash and 1inch in early February. The transfers involved converting ETH to Wrapped ETH (WETH) and then to USDT stablecoin, with approximately $20 million worth of crypto being channeled to the TRON blockchain via SwftCoin.

Analysts pointed out that these transactions exhibited suspicious patterns that suggested an attempt to circumvent anti-money laundering measures. It was also revealed that certain funds originating from AAX had been blacklisted by Tether Inc., the issuer of USDT, while the remaining funds were deposited into centralized exchanges Bybit and MEXC. As of now, UmbraCash, 1inch, Bybit, and MEXC have not issued any public statements regarding the incident.

Initially, AAX attributed the suspension of its activities and withdrawals to technical issues and security concerns following FTX’s collapse. However, further developments saw Ben Caselin resign from his role as vice president of global marketing and communications at AAX, citing worries about the exchange’s operational transparency.

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