Hong Kong's Commercial Crime Bureau on Friday arrested two men (both Hong Kong natives) suspected of involvement in the Atom Asset Exchange (AAX) digital asset fraud scam, according to the police.

The two men, aged 37 and 44, were arrested on Friday, December 23. The former was charged with "misleading police," while the latter was charged with fraud.

"AAX used false information, spread fake news and other illegal means to stop the operation of its trading platform, so investors did not get their virtual assets back," Kung Hing-fun, Commercial Crime Bureau Fraud Division, said at a press conference.

Authorities further noted that AAX suspended user withdrawals citing "malfunctions and maintenance," after which the exchange's executives fled Hong Kong with the company's crypto wallet and private keys.

Kung added that the investigation was ongoing and that additional arrests could be made in the meantime.

AAX is headquartered in Hong Kong and is registered in Seychelles. The exchange is one of a growing number of crypto companies affected by the collapse of the crypto empire FTX, with investors opting to withdraw their cryptocurrencies amid fears of a shock to the entire crypto industry.