AAX halts withdrawals on Hong Kong–based crypto exchange

Hong Kong-based cryptocurrency exchange AAX has halted withdrawals. The company cited a planned system upgrade.

At AAX, we have always put our users first, and here we would like to share with you the following updates regarding our current situation.https://t.co/eStF80TBS2

— AAX (@AAXExchange) November 13, 2022

In a statement, the platform stressed that the restriction of operations is not related to crash of FTX:

“In light of the insolvency of one of the largest players in our industry, users are rightfully concerned about the operational and financial stability of centralized exchanges. … We hope that, as a community, we can weather these troubling times together.”

The team aims to restore platform functionality within seven to ten days.

“Poor timing for planned maintenance aimed at addressing serious vulnerabilities, which will last more than 24 hours. Because of additional precautions, this will take longer,” said Ben Caselin, AAX vice-president.

Bad timing for a scheduled maintenance at @AAXExchange, aimed to address serious vulnerabilities, to be prolonged for more than 24 hours. Out of extra precaution this will take longer. Wait for official announcement.

— ₿en Caselin HODL (@BenCaselin) November 13, 2022

The company explained that the update was the result of a “failure at an external partner,” resulting in “inaccurate balance records for some users.”

“Given the already dire circumstances in the industry, resuming access will require a degree of caution and will be gradual, as sentiment cools,” added Caselin.

On November 11, the exchange team posted a Twitter thread with assurances that the platform “has no financial risk related to FTX and its affiliates.”

AAX has no financial exposure to FTX and its affiliates. More importantly, all digital assets on AAX remain intact with a substantial amount stored in cold wallets, and user funds are never exposed to counterparty risk from any financing or venture activities.

2/5

— AAX (@AAXExchange) November 11, 2022

“All digital assets on AAX remain intact, with a substantial amount stored in cold wallets. User funds are not exposed to counterparty risk from any financing or venture activity,” the company said at the time.

According to CoinGecko, trading volume on AAX over the last 24 hours stood at $1,893. In the platform’s listing, there are 251 assets across 276 pairs. Open interest in the derivatives venue stands at $601 million.

As noted, Binance CEO Changpeng Zhao suggested that the FTX crisis “cascading effect” in the crypto industry.

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