Crypto Exchange Founder Sued for Millions as Missing Customer Assets Exceed $200 Million

The founder of the crypto trading platform Tokenize Xchange is facing a lawsuit from 272 former customers over the disappearance of millions of dollars in user funds, according to reports. The suit names Hong Qi Yu, founder and CEO of Tokenize's parent company AmazingTech, along with COO Erin Koo Kee Hoon, who is Hong's wife.

The legal action follows findings from court-appointed interim judicial managers in September, which revealed a drastic shortfall in the company's finances. While AmazingTech reportedly owed users approximately $205.34 million, its realizable assets stood at only about $2 million. The lawsuit alleges that Hong and Koo fraudulently misappropriated the remaining $203.34 million. Claimants are currently seeking $46.65 million in damages, representing the amount they held on the platform when they attempted to withdraw their funds or as of July 31, 2025.

The plaintiffs' lead lawyer, Suresh Divyanathan, MD of Dauntless Law Chambers, emphasized the devastating impact of the findings. He stated that the managers' report, which showed the company held "less than 1 per cent of customers' total assets, came as a deep shock to my clients... They are incensed that practically all their assets on Tokenize Xchange have disappeared. Some of them have lost their entire life savings.”

The lawsuit alleges several deceptive practices, including the firm's failure to use a central limit order book, instead executing trades directly between the exchange and the users. It further claims that the order book displayed was allegedly sourced from the Binance exchange with a calculated mark-up. Furthermore, the suit claims Tokenize Xchange commingled company and user funds, despite contractual promises to hold customer funds separately in a trust. The exchange, which operated under a Payment Services Act exemption, had its Major Payment Institution license application denied by Singapore's Monetary Authority in July 2025, leading to a cease-and-desist order.