SINGAPORE – The abrupt shutdown of Tokenize Xchange, once a rising name in the regional cryptocurrency market, has left thousands of investors uncertain about the fate of their funds as police investigations into its operator unfold.
For retiree George Tan, who ventured into crypto in 2019 after the sector’s painful correction in 2018, the fallout has been deeply personal. Having taken courses in blockchain and crypto mining to better grasp the volatile industry, he gradually built a portfolio worth about S$50,000 through dollar-cost averaging. But those gains turned hollow when Tokenize Xchange ceased operations in Singapore, just as authorities revealed a probe into its operator AmazingTech for alleged fraudulent trading.
The platform’s troubles began in July 2025, when it announced that it had failed to secure a digital payment token licence from the Monetary Authority of Singapore (MAS), ending its temporary exemption to operate. Days later, MAS disclosed possible “false representations” over customer asset segregation. Its founder and CEO, Hong Qi Yu, was charged with fraudulent trading on July 31, sending shockwaves through its user base.
Tokenize Xchange had appeared stable and even promising to many investors. Founded in 2017, it expanded into Malaysia, securing full approval from the Securities Commission Malaysia in 2020, and last year raised US$11.5 million in funding. As recently as early July, users were assured via email that the firm had obtained a licence in Labuan and was on the cusp of regulatory approvals in both Abu Dhabi and Singapore. For customers like Tan and Penny, a young sales executive who invested as much as S$18,000 at one point, the shutdown felt sudden and surreal.
The exchange had set out a phased withdrawal plan based on portfolio size—smaller accounts first, followed by mid-tier and large holdings through September. Yet, investors report that withdrawals remain stuck “in transit,” with emails to the platform going unanswered. Penny, who now has around S$4,000 in holdings, said she had trusted the platform’s longevity in Singapore as a sign of safety, only to realise too late that it was operating under temporary exemption.
The platform’s native token, TKX, had already shown troubling signs. From a high of US$47.97 in January, it plunged to US$6 by mid-July. Tan, uneasy about the decline, managed to withdraw a small amount before the shutdown notice arrived on July 17. Hours later, all trading and withdrawals were disabled.
MAS clarified that firms operating under exemption were never licensed or supervised under the Payment Services Act, leaving customers without regulatory safeguards. Academics such as Professor Lawrence Loh of the National University of Singapore noted that while exemptions offered fairness during the transition to new laws, they may have given investors a “false sense of security.”
Meanwhile, legal proceedings have taken shape. On the initiative of a group of investors, the High Court placed AmazingTech under interim judicial management, appointing restructuring firm KordaMentha to oversee operations and assets. Withdrawals are suspended while managers assess the company’s financial position, with a report due by September 10 and a judicial management hearing scheduled no later than September 15. Legal experts have stressed that judicial management aims to preserve value and potentially allow better outcomes than liquidation, but outcomes remain uncertain.
For investors, the uncertainty has been emotionally draining. Penny started a Telegram group to connect with others, share updates, and seek solidarity. Tan, though experienced and cautious, admitted that complacency cost him dearly. “The biggest lesson is to always move your crypto to a cold wallet. If it’s not in your wallet, it’s not truly yours,” he said, reflecting on the ordeal.
Now in his 60s, Tan tries to steel himself for the worst. “Every day I tell myself to just write it off. If I hold on to too much hope, I don’t know how to get through the day,” he said, acknowledging that the loss could erode part of his retirement savings.
As judicial managers review Tokenize Xchange’s books and investors await clarity, the saga stands as another stark reminder of the risks in the fast-evolving but fragile world of cryptocurrency trading.
