AAX exchange logo, Hong Kong city

AAX crypto exchange suspends withdrawals amid FTX fallout

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Hong Kong-based crypto exchange AAX is suspending withdrawals for seven to 10 days for a scheduled system upgrade to protect users from fraud and exploitation, according to its official announcement published Sunday.

See related article: FTX files for bankruptcy, Sam Bankman-Fried steps down as CEO

Fast facts

  • AAX says it found and manually restored some user balance data abnormally recorded in its system due to the failure of a third-party partner, who has not been named.
  • “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,” AAX vice president Ben Caselin tweeted early morning on Monday.
  • AAX says it has no financial exposure to FTX or its affiliates, and its digital assets remain intact with a significant amount stored in cold wallets. 
  • FTX, a crypto exchange valued at US$32 billion at one point, filed for bankruptcy protection in the U.S. last week with chief executive officer (CEO) Sam Bankman-Fried stepping down.
  • Amidst the collapse of FTX, it was reported that the exchange was using customer funds to foster its sister trading firm, Alameda Research.
  • It was also reported that more than US$600 million was hacked from FTX’s crypto wallets last Friday.

See related article: FTX debacle has crypto industry pointing finger at regulators in call for clear rules of the road





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