Amid Crypto Market Meltdown, Hong Kong-Based AAX Suspends Withdrawals

AAX's announcement comes in the wake of the collapse of FTX, one of the world's largest cryptocurrency exchanges.

AAX said that it has no financial exposure to FTX or its affiliates.

Source : Getty

San Francisco: Hong Kong-based crypto exchange AAX has suspended withdrawals, citing the "failure of our third-party partner", which caused some users' balance data to be improperly recorded while scheduling a system upgrade. "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," AAX said in an official statement on Sunday. "AAX will continue our best efforts to resume regular operations for all users within 7-10 days to ensure the utmost accuracy," it added.

Taking to Twitter, AAX vice president Ben Caselin said: "Bad timing for a scheduled maintenance at @AAXExchange, aimed to address serious vulnerabilities a given the already fearful circumstances in industry, opening up will require some caution and will be gradual, as sentiment cools."

From my best observation, it will take a few days before we can start to see things open up and be resolved. Not easy while market is fearful. For now, also for media, be a good player and give AAX time to open up gradually while ensuring absolute system integrity.

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

AAX's announcement comes in the wake of the collapse of FTX, one of the world's largest cryptocurrency exchanges.

The beleaguered crypto exchange on November 11 announced that it has filed for Chapter 11 bankruptcy in the US, as its Founder and CEO Sam Bankman-Fried resigned from his role.

The company also admitted that "unauthorised transactions"drained hundreds of millions of dollars from its wallets, saying the company has moved many digital assets to a new "cold wallet custodian".

FTX did not reveal how much it lost in unauthorised transactions but reports claimed the amount could be as high as $600 million.

However, AAX said in its statement on Sunday that it has no financial exposure to FTX or its affiliates, and its digital assets remain intact with a significant amount stored in cold wallets.

(This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)

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