AXS Miles Exploit behind Chocolate Finance Bank Run

This decision, however, sparked frustration among users who felt blindsided by the abrupt end to such a generous perk, according to Walter de Oude, the company’s founder and CEO, in a statement made on March 10.

The lack of clear communication about the change left customers unsettled, prompting many to pull their money out. This drained the reserves Chocolate Finance keeps on hand for instant withdrawals, forcing a temporary halt to the service.

De Oude shared these insights during an exclusive chat with a news outlet, shortly after the company released a notice blaming the pause on an overwhelming surge in withdrawal requests.

Chocolate Finance, run by Chocfin, operates under a license from the Monetary Authority of Singapore (MAS) to manage funds. In response to inquiries, MAS confirmed it has directed Chocfin to handle customer refunds smoothly and keep users updated on progress. The regulator is also looking into how Chocolate Finance marketed its instant withdrawal feature, a spokesperson noted.

De Oude explained that merchants typically pay a fee to card networks like Visa or Mastercard per transaction, a portion of which goes to the card issuer—here, Chocolate Finance. But with AXS machine usage, no such revenue comes back to the company.​

The firm had banked on profits from other transactions offsetting the cost of miles earned through AXS, but that assumption didn’t hold. “Some users were clearly taking advantage,” de Oude admitted, noting a growing trend of “huge payments” made via AXS to rack up rewards.

To curb this, Chocolate Finance axed AXS from the program in early March, just weeks after the debit card’s debut. The move, however, came without prior warning to users.

“Announcing it ahead of time would’ve just fueled even more exploitation,” de Oude reasoned. “Looking back, though, we could’ve handled it better—given more notice and discussed it with our community.”

Instead, the company quietly updated its online FAQ page. The initial wording suggested AXS had dropped the card, but this was quickly corrected to clarify Chocolate Finance’s role in the decision. By then, trust had already taken a hit, de Oude acknowledged.

Online, hundreds of upset customers voiced their displeasure, accusing the company of lacking transparency. “We dropped the ball on clarity—that’s our responsibility to fix as we move forward,” de Oude said, sidestepping questions about internal reviews or accountability for the misstep.

In a LinkedIn post earlier, he’d admitted the sudden shift fueled negative feedback, withdrawals, and a dip in sentiment toward the brand.

Toh Zhi Han, a client adviser at Providend, a wealth advisory firm, echoed this, telling a news outlet that a few business days is typical for fund access. He suggested Chocolate Finance likely maintains a separate pool for its standout instant withdrawal option, but a flood of requests could overwhelm it, delaying payouts until assets are liquidated.

De Oude said the goal is to bring back instant withdrawals once operations stabilise. “It’s a groundbreaking feature in fund management—unique and a real game-changer,” he said, though he kept mum on the size of the liquidity pool, only mentioning it’s funded through debt and equity.

“Most days, instant access works fine. But occasionally, like now, we might need a brief pause,” he added, declining to reveal the total number of withdrawal requests. “Everyone who’s asked for their money will get it on schedule,” he promised, noting most funds have stayed put and withdrawal demand is easing.

As refunds hit bank accounts, confidence should rebound, de Oude predicted. “Once that happens, we’ll be ready to relaunch our liquidity program.”