272 customers file lawsuit alleging fund misappropriation and fraudulent practices; recoverable assets reportedly just $2 million
Singapore- The founder and CEO of Singapore-based crypto exchange Tokenize Xchange, Hong Qi Yu, is facing a consolidated lawsuit from 272 former customers claiming massive financial losses. According to the complaint, serious fraudulent activities occurred during the operation of the exchange, resulting in the disappearance of approximately $205.34 million in user funds. Hong’s wife and COO, Erin Koo Kee Hoon, has also been named in the suit.
The case has been filed in the Singapore High Court, where the claimants are seeking $46.65 million in damages, representing the funds they held on Tokenize Xchange either on July 31, 2025, or at the time they attempted withdrawals.
Allegations of fund mismanagement and fraud
According to a report by interim judicial managers, AmazingTech—the parent company of Tokenize Xchange—held barely 1 percent of total user funds. The report alleged that Hong and Koo fraudulently misappropriated nearly $203.34 million.
The lawsuit further claims that Tokenize Xchange did not operate a central limit order book for trading; transactions were reportedly executed directly between the exchange and its users. The displayed order book was allegedly linked to Binance, with marked-up spreads creating a misleading perception of liquidity and trading volume, resulting in heavy user losses.
Additionally, the exchange failed to segregate customer funds from company funds, in direct violation of contractual obligations, heightening the allegations of fraudulent conduct.
Licensing and operational shortcomings
In July 2025, Tokenize Xchange announced that it had secured a license in Labuan and was in the “final phase” of obtaining a license in the Abu Dhabi Global Market. However, the interim judicial manager’s report revealed that the Labuan acquisition was never completed and the Abu Dhabi plan did not progress beyond preliminary stages.
AmazingTech had been operating under an exemption from the Payment Services Act 2019 in Singapore. When the Monetary Authority of Singapore (MAS) denied its license application in July 2025, the company was instructed to cease payment services and return all customer funds and cryptocurrencies.
Financial investigations and court actions
In August 2025, the Commercial Affairs Department launched an investigation into AmazingTech and related entities. The probe found significant discrepancies in the segregation of customer and company funds. Hong was charged under the Insolvency, Restructuring and Dissolution Act for fraudulent trading. By September 2025, the High Court had wound up the company.
The lawsuit specifies that both Hong and Koo were involved in misappropriating customer assets and conducting exchange operations in a manner constituting fraud.
Legal representation and next steps
Hong will be represented by Nichol Yeo and Clement Julien Tan from Nine Yards Chambers, while Koo is expected to have a separate legal team.
Industry experts note that the Tokenize Xchange case raises serious concerns regarding customer fund security and exchange transparency in the crypto sector. Analysts urge users to exercise extreme caution and conduct due diligence before investing, emphasizing the importance of dealing only with regulated and trustworthy platforms.
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