The Hong Kong-based cryptocurrency exchange AAX, which suspended withdrawals, is reportedly on the verge of closure. 8BTC reports, citing TechFlow.
According to TechFlow, AAX is rumored to be closing down. According to some screenshots, the company will soon be dissolved, employees will only be paid until November, and employees will only receive half of the platform’s assets. https://t.co/TspSxK5Jrr
— 8BTCnews (@btcinchina) November 28, 2022
According to the released screenshots of the correspondence, the company will be closed soon, employees will be paid through November and will receive only half of the assets on the platform.
The support team told the publication that they could not confirm the authenticity of the messages, but advised “prepare for the worst”.
The exchange has also deleted its YouTube channel with all content and closed its Facebook account. The AAX Twitter account is active, but the last post as of writing is dated November 21.
On November 13 the platform suspended withdrawals, citing maintenance. The team warned that this would take several days.
On November 19 the company published a statement about continuing platform updates. AAX also acknowledged that it is seeking additional capital to restore “normal operations.” The exchange reportedly has “50 potential investors,” with some of them negotiations in a “decisive stage”.
“These investors need time to assess the situation with AAX and conduct due diligence. The company has a chance to secure sufficient financing and resume normal operations in the coming weeks. This is the best outcome for all partners and users of the exchange,” the statement says.
On November 21 the platform automatically closed clients’ positions in futures. According to CoinGecko, as of November 14 open interest on AAX’s derivatives stood at $601 million.
📣Announcement of Automatic Liquidation of AAX Futures Positions
In order to protect the rights and interests of users, during the system maintenance period, AAX will automatically liquidate all futures positions on the platform.
Please find the details below.
1/4
— AAX (@AAXExchange) November 21, 2022
Against this backdrop, vice president Ben Caselin announced his resignation.
Dear all, it’s true I have resigned from AAX. I did fight for the community but none of the initiatives we came up with were accepted. Any role I had left for communication became hollow.
1/4
— ₿en Caselin HODL (@BenCaselin) November 28, 2022
“I fought for the community, but none of my initiatives were accepted. Any role I used for communication proved hollow,” he wrote.
According to Caselin, he still believes in a good outcome, but “the brand is already gone and the damage has been done.”
As a reminder, on November 15 the platform for token sales and the cryptocurrency exchange CoinList suspended withdrawals of some assets, citing technical issues with custodial partners.
On November 25 the exchange reiterated its position and assured that it does not suffer a liquidity shortage.
Earlier, Binance CEO Changpeng Zhao suggested that the FTX crisis would trigger a cascade effect in the crypto industry.
Read ForkLog’s Bitcoin news on our Telegram — cryptocurrency news, prices and analysis.