Tokenize Exchange Liquidator Updates on 20 March 2026

This Opinion post first appeared in my blog here: https://pwlcm.wordpress.com/2026/03/24/tokenize-exchange-liquidator-updates-on-20-march-2026/

Disclaimer: This post is just for educational sharing purposes. Please do your own due diligence on any products mentioned in this post.

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I received an email update from KordaMentha (the Liquidators) at 6:30pm on 20 March 2026:

I wasn't sure what this update was about, so I sought clarification from KordaMentha.

OC 984 is a separate class action suit initiated by some creditors of Tokenize Exchange against Mr Hong Qi Yu (Tokenize Exchange's CEO) and Ms Erin Khoo (Mr Hong's wife), who apply for a stay of proceedings under case numbers SUM 438 and SUM 441 respectively.

The hearing of SUM 438 and SUM 441 took place on 13 March 2026, where Mr Hong and Ms Khoo argued for a stay of proceedings in OC 984, and asked for an arbitration proceedings instead.

I wasn't familiar with the legal term "stay of proceedings", so I searched the web for explanation and found the following definition on https://www.lexisnexis.co.uk/legal/glossary/stay:

What does Stay mean?__
A court may order a stay of proceedings which puts a halt or ‘stay’ on the conduct of the proceedings to either a part or whole of a claim.

The order is generally to allow time for something to happen in accordance with the court’s objective to ensure cases are dealt with in a just and reasonable manner (CPR 1.1(2)). Situations where such an order may be made are where: a party wishes to challenge the court's jurisdiction; a party wishes to refer the dispute to arbitration; the parties wish to try to resolve the dispute through settlement; or there are related criminal proceedings. A stay may be general or for a set period of time (for example under CPR 26.4). It is ordered following an application by a party or the court acting on its own initiative. A stay can be lifted, allowing proceedings to continue. Either party may apply to the court to lift the stay under the court's case management powers.

It means that Mr Hong and Ms Khoo were asking for a pause in class action suit and refer the claims to arbitration instead (i.e. looking for out-of-court settlement).

The Deputy Registrar had dismissed their cases in the morning of 20 March 2026. They had up to 10 April 2026 to file their Defence.

The class action suit is independent from the liquidation suit and KordaMentha will continue to monitor the proceedings and provide periodic update to Creditors.