Investors seek judicial management of Tokenize Xchange operator

Seven cryptocurrency investors have applied to the High Court to place AmazingTech – the operator of embattled cryptocurrency platform Tokenize Xchange – under interim judicial management to protect their investments.

- Timothy Goh

If their court application on Aug 5 is successful, the High Court can appoint professional managers to take over the day-to-day running of the company and audit its assets.

The Straits Times understands the seven customers have not been able to withdraw their deposits amounting to more than $4 million that are held by Tokenize Xchange.

Trading of cryptocurrencies on the platform remains suspended.

The High Court move by the seven investors comes as AmazingTech and its related entities are under investigation by the police for potential offences of fraudulent trading under the Insolvency, Restructuring and Dissolution Act.

Hong Qi Yu, a director of AmazingTech, and the founder and chief executive of Tokenize Xchange, was charged in court on July 31 over fraudulent trading under the same Act.