There was panic spread over the two million worldwide users of the crypto exchange platform AAX, as users all complained about the sudden message they all got when trying to perform transactions.
Over the weekend, users in the crypto community expressed their worries about the “system upgrade” pop-up message on the AAX exchange. They wondered if the platform was going to be next to fall from the recent FTX tragic saga. It would not be surprising as many crypto businesses have been caught in the crossfire and lost many funds. Given the unconventional timing for the exchange platform to mention a system upgrade, it seemed only natural that people would wonder.
However, the company took to Twitter to clarify that there has been a minor glitch in the system which requires fixing, and the reason for this is not related to the crash of the popular exchange platform FTX.
AAX further mentioned that its users exercise patience as the system upgrade will take seven to ten days to be fixed. The reason for the system repair is no contact with FTX but, instead, the failure of a third-party partner. Due to this, AAX suspended all withdrawals on the platform.
The vice president of the Hong-Kong base exchange platform, Ben Caselin, also posted on his Twitter page to highlight the issue regarding the glitch in the system. He stated that the system upgrade had not been fixed due to the recent unpredictable activities in the market; hence, the suspension of withdrawals was a method of curbing the potential risks of fraud and exploitation.
“Bad timing for a scheduled maintenance at AAXExchange, aimed to address serious vulnerabilities, to be prolonged for more than 24 hours, ” he said.
Although this has eased the minds of its 2 million global users, there have been talks about crypto investors and traders removing their funds and savings from centralized exchanges and storing them in self-custody solutions.
The sudden suspension of withdrawals by AAX has baffled its customers. However, the company has repeated that its system upgrade is in no correlation with the fallout of FTX but because some users’ balance data were abnormally recorded due to the failure of a third-party partner who remains anonymous to the public.
In a tweet on November 11, AAX claimed that it had no exposure to FTX or any of its affiliates as the Hong-Kong based company proudly boasts of storing a substantial amount of its properties in cold wallets. To ensure its user’ fund safety, the company also states that it does not give out its customers’ funds to venture activities.
Launched in 2019, AAX is a pioneer external user of (LSEG) the London Stock Exchange Group’s matching technology.
Companies Delinking From FTX
AAX is one of many crypto companies that have come out to address the crypto community about its affiliation with the once prosperous crypto exchange, FTX.
Having announced that it has no exposure to FTX or its affiliates, a notion misconstrued by its users due to its unexpected suspension of withdrawals, several other crypto companies have also delinked from FTX.
Earlier last week, the CEO of Crypto.com, an influential crypto exchange, Kris Marszalek, announced that it had little exposure in FTX, claiming that the company had less than $10 million compared to its worldwide revenue of $1 billion.
The giant financial service company, Visa, has declared that it has annulled its ties with FTX. The company stated that it had terminated its worldwide agreements with FTX, and its U.S debit card program is being rescinded. The company sympathized with the exchange company’s unfortunate turn of events, adding that it is watching developments closely.
Amidst the chaos that has struck the crypto market since the news of FTX’s unfortunate crash, a subsidiary of Hbit, Huobi, announced that it has an exposure of $18.1 million on FTX, of which $13.2 million belongs to its users. However, it has encouraged its users not to fret as the company vouched to cover the expenses via a loan of $14 million yet to be secured.
The past week has been a tumultuous turn of events for everyone involved in the crypto industry. Users of AAX noticed a system upgrade notification and assumed the worst had happened. However, the company only temporarily suspended withdrawals to fix critical issues in its system.