• 17 July, 2024

Hong Kong-based Crypto Exchange AAX Suspends Withdrawals

According to an official announcement published Sunday, Hong Kong-based crypto exchange AAX has suspended withdrawals citing a glitch in a system upgrade.

AAX claims it discovered and manually restored some user balance data that had been abnormally recorded in its system due to the failure of an unnamed third-party partner.

According to the announcement, the failure of a third-party partner means that services could be delayed for up to 10 days.

In light of the collapse of FTX, it was revealed that the exchange was using customer funds to support its sister trading firm, Alameda Research.

On November 11, FTX announced that it had filed for Chapter 11 bankruptcy following the resignation of its Founder and CEO, Sam Bankman-Fried.

There have also been reports of FTX’s assets being hacked and hundreds of millions of dollars from its wallets.

However, AAX stated that it has no exposure to FTX, and that its digital assets are still intact, with a significant amount stored in cold wallets.

We understand it is important for users to be able to withdraw and transact as soon as possible, and we are working extremely hard to offer limited withdrawals to minimize risk.” the company said

The exchange has developed an AAX User Withdrawal Request Form for withdrawals and other operational requests. AAX has also formed a Task Force to closely monitor the situation and provide daily updates about the status of daily withdrawals and the progress of system updates.

“Bad timing for a scheduled maintenance at @AAXExchange, aimed to address serious vulnerabilities a given the already fearful circumstances in the industry, opening up will require some caution and will be gradual, as sentiment cools,” AAX vice president Ben Caselin said on Twitter.

In a statement to Bloomberg, Caselin said,

The FTX situation has put immense pressure in exchanges everywhere with users nervous about exchange holdings.” He added, “It’s my observation this can be resolved in a few days, although rebuilding market confidence may take months.

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