Cryptocurrency Exchange AAX Suspends Withdrawals, Denies Exposure to FTX

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Last Updated on November 14, 2022 by Bitfinsider

According to a press release from the firm, AAX, a crypto trading platform based in Hong Kong, ceased withdrawals on Sunday and plans to resume trading in 7 to 10 days. But we’ve heard that one before in the crypto world.

AAX asserts that the stoppage was caused by a “third party partner” whose system failed during a previously “planned” “system upgrade” and has nothing to do with the implosion of FTX, which has sent shockwaves across the fake money world. FTX, which was valued at $32 billion, suspended withdrawals last week and then filed for bankruptcy, leaving many consumers with nothing.

“In light of the collapse of one of the main companies in our market last week, crypto users are understandably concerned about the operational and financial viability of centralized digital asset exchanges,” AAX stated in an online statement.

“At AAX, we’ve always prioritized our users, thus we’d like to give the following updates regarding our current position. We are optimistic that, as a community, we will be able to persevere through these difficult times together,” the message concluded.

According to a press release, AAX has over 2 million members in 100 countries and is limiting services such as withdrawals due to “several malicious attacks” because “the technical staff had to manually review and restore the system to assure maximum accuracy of all users’ holdings.”

Intriguingly, AAX has established a Google form through which users can manually request withdrawals. However, this seems like a startlingly stupid idea, given that anyone with a Google account may create a Google form and attempt to impersonate AAX’s form.

“Our Customer Service Team will follow up and attempt to manually resolve each request in close conjunction with our security, operations, and compliance teams to guarantee a streamlined process. AAX stated in a press release that manual withdrawals will take longer than usual.

AAX has established a “special task force” to offer daily updates at 12:00 p.m. local time in Hong Kong, which is currently 11:00 a.m. on the east coast of the United States.

AAX concludes its press release by stating that it would never request a user’s password, two-factor authentication credentials, or other sensitive information. However, AAX recognizes that the Google form where it processes manual withdrawals requires a copy of identification.

After a decline over the weekend that saw bitcoin fall below $16,000, the crypto market recovered marginally on Monday morning. Bitcoin is currently trading at $16,704, a tiny increase from the previous day, and Ethereum is currently selling at $1,255, an increase of 2.38 percent from the previous day.

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