Hong Kong-based crypto exchange AAX has reiterated that it is suspension of withdrawals around the platform is not related to the continuing fallout from FTX’s collapse and rumors on the contrary are false.
The crypto community reported visiting a “System upgrade notification” message on November. 13, which stated that the system upgrade “is taking more than usual,” that will delay withdrawals. Some shared concerns about if the exchange was the following domino to fall after FTX and BlockFi.
However, inside a November. 13 publish, AAX reiterated the temporary halt to services was to be able to fix a glitch inside a system upgrade.
The exchange stated it had been understandable why users might have panicked over its halting of withdrawals on November. 13.
“In light from the insolvency of our industry’s largest players a week ago, crypto users are rightfully worried about the operational and financial stability of centralized digital asset exchanges.”
We’re hopeful that like a community we are able to brave with these troubling occasions, together.
— AAX (@AAXExchange) November 13, 2022
The crypto exchange, that is understood to possess two million users worldwide, described the scheduled system upgrade is caused by “the failure in our third-party partner,” which brought with a users’ balances being “found abnormally recorded within our system.”
Consequently, it’s limited its services to avoid further risks, together with a 7 to 10-day suspension of withdrawals “to avoid fraud and exploitation.”
Fears of contagion from nov FTX have sparked many within the crypto community to advise others to pull their from centralized exchanges and into self-child custody solutions.
AAX v . p . Ben Caselin acknowledged inside a November. 13 Twitter publish the inopportune timing from the upgrade, but stated it had been targeted at addressing “serious vulnerabilities.”
Bad timing for any scheduled maintenance at @AAXExchange, aimed to deal with serious vulnerabilities, to become prolonged in excess of 24 hrs. From extra precaution this can take more time. Watch for official announcement.
— ₿en Caselin HODL (@BenCaselin) November 13, 2022
Caselin also noticed that the job was “not easy while marketplace is fearful:”
“Given the already fearful conditions in the market, opening will need some caution and will also be gradual, as sentiment cools.”
Within an earlier November.11 Twitter publish AAX stated they’d “no financial contact with FTX and it is affiliates.”
“More importantly, all digital assets on AAX remain intact having a substantial amount kept in cold wallets, and user money is never uncovered to counterparty risk from the financing or venture activities,” it added.