AAX Says Withdrawals Suspension Has Nothing To Do With the Collapse Of FTX
AAX, a crypto exchange based in Hong Kong, has repeated its statement that its withdrawal suspension is not caused by the ongoing collapse of the well-known crypto exchange FTX and that rumors other than this are wrong. Reportedly, on the 13th of November, the crypto community obtained a message regarding the notification of a system upgrade.
AAX Reiterates There Is No Link Between Its Withdrawal Suspension and FTX Contagion
The message stated that the respective system upgrade was taking additional time and that the withdrawals would witness a delay. A few expressed apprehensions regarding if the exchange platform was additionally going through the domino effect created by BlockFi and FTX. Nonetheless, it was repeated by AAX in its post on the 13th of November that the momentary suspension of its services was targeted to resolve the bug in a system upgrade.
The exchange admitted that this was a situation in which the consumers may have freaked. It added that keeping in view a top industry player’s insolvency in the previous week, the crypto consumers are rightful in raising apprehensions over the financial and operational stability of the centralized exchanges of digital assets.
The crypto exchange, reportedly having up to 2 million consumers across the globe, elaborated that the planned system upgrade counts as the consequence of their 3rd-party collaborator, leading to the nonstandard recording of a few consumers’ balances in their system. Thus, it restricted its services to a small scale to avoid additional hazards, taking into account a withdrawal suspension of approximately 7 to 10 days to prevent exploitation and scam.
Vice President Admits Time Is Not Appropriate for the Upgrade
After the FTX fallout, many fears regarding a contagion have been ignited across the crypto community. In this respect, several have been advising others to withdraw their funds kept in the centralized exchanges as well as shift them to self-custody solutions. Ben Caselin, the vice president of AAX, admitted in a tweet on the 13th of November that the time for the upgrade was not adequate.
However, he specified that some severe vulnerabilities were the aim of the respective upgrade. In an earlier tweet, that was shared on the 11th of this month, AAX brought to the front that they had not been financially exposed to FTX or its affiliates. It added that the entirety of the AAX-based digital assets is completely intact with a huge number kept in cold wallets.
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