Popular crypto exchange founder sued after users lose over $200M

Core Points - The founder of Tokenize Xchange, Hong Qi Yu, and COO Erin Koo Kee Hoon are facing a lawsuit from 272 former customers over the loss of approximately $205.34 million, with only $2 million in realizable assets reported [1][2] - The claimants are seeking $46.65 million in damages, alleging that their assets either disappeared or were not accessible when they attempted to withdraw funds [3] - The lawsuit accuses Hong and Koo of fraudulent misappropriation of funds and deceptive practices, including the misrepresentation of trading operations and the commingling of user and company funds [4][5] Financial Details - AmazingTech reportedly owes users around $205.34 million, while its realizable assets are only about $2 million, indicating a significant financial discrepancy [2] - The claimants assert that they held $46.65 million on the Tokenize Xchange as of July 31, 2025, or at the time of their withdrawal attempts [3] Legal Proceedings - The lawsuit highlights that the company did not complete the acquisition of a license in Labuan due to fraud allegations against Hong, and no progress was made on the Abu Dhabi licensing plan [6][7] - Legal representation for Hong and Koo has been confirmed, with different teams handling their cases [7]