AAX exchange, Hong-Kong based crypto exchange, has suspended cashing out since 13 November 2022. The system said this happened because the FTX collapse pressured them and the industry.
AAX also associated their decision with a third party, whom the platform did not expose. The exchange said that the third party failed them, causing the balance data of some users to be recorded improperly when planning for a system update. “Withdrawals have been suspended to avoid fraud and exploitation,” said AAX exchange.
The user’s balance must be restored manually after the partner fails, causing the system to enter abnormal data per AAX exchange.
London Stock Exchange’s spokesperson told coindesk that it was not the partner AAX was talking about, and it had no issues with the exchange.
This suspension announcement followed the collapse of FTX, one of the significant cryptocurrency exchanges.
AAX exchange additionally stated that the suspension was not permanent and was due to technical issues. In an official statement on Sunday, AAX said,
“Limiting our services to prevent further risks, the technical team has had to manually proofread and restore the system to ensure maximum accuracy of all users’ holdings.”
The exchange also stated in the Sunday statement that it has no financial exposure to FTX and its associates. Its digital assets remain intact, with many kept in cold wallets.
“AAX will continue our best efforts to resume regular operations for all users within 7-10 days to ensure the utmost accuracy,” the exchange said.
In regards to the matter, Ben Caselin, The exchange president, tweeted that,
“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.”
Users Do Not Trust AAX Anymore
A tweet by @WhalesChart recently raised the suspension issue while warning AAX and crypto users to stay away from the exchange.
The tweet said,
“WARNING: Crypto exchange @AAXExchange has suspended withdrawals for 15 days. Today they deleted their Youtube channel with all the videos. Do not deposit more crypto into that exchange!”
Today, 27 November 2022, the AAX exchange has yet to lift the suspension. They have deleted their youtube videos, including the whole channel.
Their exchange message still has a message that associates the suspension with technical issues. The message says,
“The current system upgrades require our third-party partner to proofread and restore all users’ asset data. Due to the current market situation, the integration is taking longer than usual and is now in the queue to be completed within 7-10 days. We apologize for the inconvenience caused and will continue our best effort to resume regular activity.”
CMC has yet to give any information about the trading volume and daily exchanges of AAX exchange since 15 November.
The exchange also tweeted that,
“AAX reserves the right to bring legal action against false accusations and allegations from any person or institution.”
