Cross-border Quantuma team working on AAX collapse

24 May 2023 2 min. read
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Crypto company Atom and its platform Atom Asset Exchange (AAX) have gone bust, with restructuring experts from Quantuma called in to save what is left saving.

Incorporated and headquartered in the Cayman Islands, Atoms operated the cryptocurrency exchange AAX which offered saving, spot and future cryptocurrency trading and exchange services. According to the latest records available, the AAX platform had a daily spot trading volume of around $55 million per day.

The appointment of Quantuma comes following months of uncertainty for the estimated three million AAX users (in 160 countries) on the exact status of Atom, their investments, and the company’s potential winding down.

Cross-border Quantuma team working on AAX collapse

Quantuma has now been tasked with controlling the activities of Atom, investigating the state of assets and their location, and identifying claims on behalf of creditors seeking to recover funds.

Angela Barkhouse and Kim Leck have been appointed joint provisional liquidators of Atom, further to a winding up petition being presented by creditors to the Grand Court of the Cayman Islands along with an application to appoint provisional liquidators over the holding company. The pair have also taken control of Atom’s subsidiary companies in Singapore, Seychelles and Malta.

Supporting the work in Singapore is Singapore-based Quantuma managing director Luke Furler, who has been appointed interim judicial manager for Atom’s Singapore entities.

“Uncertainty for AAX platform users has grown exponentially following a suspension of withdrawals and the closure of its operations in November 2022,” said Barkhouse.

“Creditors and users have reportedly filed complaints against Atom to a range of law and enforcement agencies, including the Singapore Police Force, Hong Kong Police Force and the Seychelles Anti-Corruption Commission, as well as the Federal Trade Commission in the United States.”

“We are working closely with established cryptocurrency investigators and intend to maximise the return of deposits to the affected AAX users through recovery efforts including securing existing assets on exchanges, investigating transfer of crypto assets and company funds, liaising with law enforcement authorities and recovering unauthorised transfers of asset out of the group.”

The appointment comes months after two Atom employees, Liang Haoming and Thor Chan, were arrested by the Hong Kong Police on the basis of “fraud and “misleading officers”.

For Quantuma, the project is the firm’s sixth insolvency case in the cryptocurrency scene. Most notable other case is that of Emergent Fidelity Technologies, a company with assets belonging to the former head of FTX, Sam Bankman-Fried.