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Former Tokenize Xchange Users Sue Founders for $60.5 Million

Over 270 former clients have launched legal action against Tokenize Xchange founders over alleged asset misappropriation, following the platform’s 2025 shutdown after MAS license rejection.

Summary

Over 270 former users of Tokenize Xchange have filed a lawsuit seeking $60.5 million in damages from founder Hong Qi Yu and co-founder Erin Koo, alleging asset misappropriation. The Singapore-based cryptocurrency exchange shut down in July 2025 after the Monetary Authority of Singapore (MAS) denied its license application. The suit follows earlier investigations into the platform’s finances, which found it owed $266.3 million to clients but retained only $2.6 million in assets at closure.

Terms & Concepts
  • Cryptocurrency Exchange: A platform that allows users to buy, sell, and trade digital currencies.
  • License Rejection: The denial of regulatory approval required for a company to legally operate within a jurisdiction.
  • Asset Misappropriation: The unauthorized use or theft of funds or resources for purposes not intended, often violating fiduciary duty or legal agreements.