AAX reiterates withdrawal halt is unrelated to FTX contagion

Hong Kong-based crypto speech AAX has reiterated that its suspension of withdrawals connected the level has thing to bash with the ongoing fallout from FTX's collapse and that y rumors to the contrary are false.

The crypto assemblage began reporting seeing a “System upgrade notification” connection connected Nov. 13, which said that a strategy upgrade “is taking longer than usual” which volition hold withdrawals. Some shared concerns astir whether the speech was the adjacent domino to autumn aft FTX and BlockFi.

However, successful a Nov. 13 post, AAX reiterated the impermanent halt to services was successful bid to hole a glitch successful a strategy upgrade.

The speech said it was understandable wherefore users whitethorn person panicked implicit its halting of withdrawals connected Nov. 13.

“In airy of the insolvency of 1 of our industry’s largest players past week, crypto users are rightfully acrophobic astir the operational and fiscal stableness of centralized integer plus exchanges.”

We are hopeful that arsenic a assemblage we tin brave done these troubling times, together.

— AAX (@AAXExchange) November 13, 2022

The crypto exchange, which is understood to person 2 cardinal users worldwide, explained the scheduled strategy upgrade is the effect of "the nonaccomplishment of our third-party partner" which led to immoderate users’ balances being “found abnormally recorded successful our system.”

As a result, it has constricted its services to forestall further risks, including a 7 to ten-day suspension of withdrawals “to debar fraud and exploitation.”

Fears of contagion from the autumn of FTX person sparked galore successful the crypto assemblage to counsel others to pull their funds from centralized exchanges and into self-custody solutions.

AAX Vice President Ben Caselin acknowledged successful a Nov. 13 Twitter station the inopportune timing of the upgrade, but said it was aimed astatine addressing “serious vulnerabilities.”

Bad timing for a scheduled attraction astatine @AAXExchange, aimed to code superior vulnerabilities, to beryllium prolonged for much than 24 hours. Out of other precaution this volition instrumentality longer. Wait for authoritative announcement.

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

Caselin besides pointed retired that the task was "Not casual portion marketplace is fearful."

"Given the already fearful circumstances successful the industry, opening up volition necessitate immoderate caution and volition beryllium gradual, arsenic sentiment cools."

Related: Exchange outflows deed historical highs arsenic Bitcoin investors self-custody

In an earlier Nov.11 Twitter post AAX said they had "No fiscal vulnerability to FTX and its affiliates.”

“More importantly, each integer assets connected AAX stay intact with a important magnitude stored successful acold wallets, and idiosyncratic funds are ne'er exposed to counterparty hazard from immoderate financing oregon task activities,” it added.