Hunt for missing millions unmasks crypto exchange hidden inside another
3 days ago
- #crypto-fraud
- #blockchain-investigation
- #regulatory-gaps
- Dutch lawyer Marius Hupkes investigates crypto fraud, tracing stolen assets to exchanges like HTX and Kyrrex.
- Kyrrex, registered in St. Vincent, facilitated fraud by allowing unverified accounts and nested services on HTX.
- HTX (formerly Huobi) failed to freeze suspicious wallets or disclose owners despite repeated complaints.
- Kyrrex's complex corporate structure includes entities in Malta and St. Vincent, evading regulatory scrutiny.
- ICIJ's investigation reveals nearly $6.5 million lost by crypto investors linked to Kyrrex wallets.
- Kyrrex wallets were used by sanctioned Russian groups to fund military operations in Ukraine.
- Hupkes represents 20 Dutch victims in a lawsuit against Kyrrex, seeking over $11 million in damages.
- Kyrrex co-founders deny wrongdoing, claiming compliance with laws and cooperation with regulators.
- Nested services and opaque ownership structures complicate accountability in the crypto industry.
- European regulators flag gaps in supervision, urging stricter oversight of crypto asset providers.