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AAX crypto exchange suspends withdrawals following FTX’s fall

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AAX crypto exchange

According to an official announcement published on November 13, Hong Kong-based crypto exchange AAX is suspending withdrawals for seven to ten days for a scheduled system upgrade to protect users.

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.

AAX vice president Ben Caselin tweeted,

“Bad timing for a scheduled maintenance at @AAXExchange, aimed to address serious vulnerabilities … Given the already fearful circumstances in industry, opening up will require some caution and will be gradual, as sentiment cools.”

https://twitter.com/BenCaselin/status/1591837425214849024

According to AAX, it has no financial exposure to FTX or its affiliates, and its digital assets are still intact, with a large portion stored in cold wallets.

FTX, a crypto exchange valued at US$32 billion at one point, filed for bankruptcy in the United States last week, with CEO Sam Bankman-Fried stepping down.

FTX’s demise was accompanied by reports that the exchange was using customer funds to support its sister trading firm, Alameda Research.

Last Friday, it was also reported that more than US$600 million was stolen from FTX’s crypto wallets.

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