AAX Exchange Clarifies Withdrawal Halt Due to System Upgrade

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  • Some others were worried that the exchange would go the way of FTX and BlockFi.
  • AAX vice president Ben Caselin acknowledged the upgrade’s inconvenient timing.

AAX, a cryptocurrency exchange located in Hong Kong, has denied reports that its recent suspension of withdrawals on the platform is related to the continuing repercussions of FTX’s collapse.

On November 13, members of the cryptocurrency community stated they saw a “System upgrade notification” that indicated an update was “taking longer than usual,” presumably meaning withdrawals would be delayed. Some others were worried that the exchange would go the way of FTX and BlockFi.

Bad Timing For Upgrade

A temporary suspension of services was necessary, AAX said in a message published on November 13. The exchange acknowledged that its customers might have panicked when it temporarily suspended withdrawals on November 13.

The cryptocurrency trading platform, which is estimated to have 2 million members globally, has announced a planned system update due to “the failure of our third-party partner,” which resulted in certain customers’ balances being “found abnormally recorded in our system.”

As a consequence, it is restricting certain of its services “to avoid fraud and exploitation” over the next week to ten days. Many in the cryptocurrency community have recommended that their peers move their holdings away from centralized exchanges and onto self-custody alternatives due to fears of a chain reaction after the FTX collapse.

In a tweet published on November 13, AAX vice president Ben Caselin acknowledged the upgrade’s inconvenient timing but said that it was necessary to solve “serious vulnerabilities.” Prior to this tweet on November 11th, AAX had said on Twitter that they had “no financial exposure to FTX and its affiliates.”

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