The founder of Tokenize Xchange is facing a lawsuit over users losing millions of dollars, The Business Times reported on Nov. 28.
A total of 272 former customers of the crypto trading exchange are suing Hong Qi Yu, the founder and CEO of AmazingTech, the parent company of Tokenize. The lawsuit also mentions COO Erin Koo Kee Hoon who is Hong's wife.
As per a report filed by court-appointed interim judicial managers in September, AmazingTech owed the users approximately $205.34 million but its realisable assets stood at approximately $2 million only.
The suit claims that Hong and Koo have fraudulently misappropriated the remaining $203.34 million.
The claimants are now claiming $46.65 million in damages -- an amount they claim they held on the Tokenize Xchange either on Jul 31, 2025, or when they attempted to withdraw their funds.
"The interim judicial managers' report that AmazingTech appears to be holding less than 1 per cent of customers' total assets came as a deep shock to my clients," Suresh Divyanathan, Dauntless Law Chambers MD and the lead lawyer in charge of the case, told the publication.
"They are incensed that practically all their assets on Tokenize Xchange have disappeared. Some of them have lost their entire life savings."
What claims does the lawsuit make?
The lawsuit claims that Hong and Koo made several deceptive actions.
It said Tokenize Xchange didn't facilitate trading through a central limit order book but allegedly executed trades directly between itself and the users.
It also said the central limit order book displayed on Tokenize Xchange allegedly belonged to the Binance crypto exchange, with a mark-up on the spread.
It alleged the crypto exchange made a false impression that it had a voluminous order book.
It also claims that Tokenize Xchange commingled company funds and user funds despite its contract promising to hold user funds separately in a trust.
The lawsuit, in particular, mentions an announcement the company made in July this year that it had secured a license in Labuan and was in the "final phase" of securing a license in the Abu Dhabi global market.
But the interim judicial manager's report mentions the company didn't complete the acquisition of the Labuan entity due to fraud allegations against Hong and no progress took place on the Abu Dhabi plan beyond the preliminary stage.
Nichol Yeo and Clement Julien Tan of Nine Yards Chambers confirmed to The Business Times that they will represent Hong in the legal battle. A different team will reportedly represent Koo.