Cryptocurrency

After FTX collapse, cryptocurrency exchange platform AAX suspends withdrawals

Another cryptocurrency exchange provider has stopped withdrawals, this time its   Hong Kong-based cryptocurrency exchange AAX, that has put a stop to withdrawals, blaming a “failure of our third-party partner” that led to incorrectly recording some users’ balance information while planning 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 given the already fearful circumstances in industry, opening up will require some caution and will be gradual, as sentiment cools.”

The news from AAX is followed by yesterday collapse of FTX, one of the biggest cryptocurrency exchanges in the world.

On November 11, the troubled cryptocurrency exchange revealed that it had filed for Chapter 11 bankruptcy in the US and that its founder and CEO, Sam Bankman-Fried, had resigned.

Additionally, the business acknowledged that “unauthorised transactions” had removed hundreds of millions of dollars from its wallets, but added that it has shifted many of its digital assets to a new “cold wallet custodian” to address the issue.

FTX withheld the amount it lost to unauthorised transactions, but sources said it might have been as much as $600 million.

But according to the statement made by AAX on Sunday, it has no financial ties to FTX or its affiliates, and its digital assets are still intact, with a sizable portion kept in cold wallets.

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