No Financial Ties To FTX
In a previous tweet, the AAX exchange said it has no financial ties to FTX or its partners.
The Hong Kong-based cryptocurrency exchange AAX has said again that the platform’s suspension of withdrawals has nothing to do with the ongoing effects of FTX’s collapse and that rumors, to the contrary, are false.
On November 13, people in the crypto community saw a message called “System upgrade notification.” It said that a system upgrade was “taking longer than usual,” which would delay withdrawals. Some are worried that, after FTX and BlockFi, the exchange could be the next domino to fall.
But in a post on November 13, AAX said that the temporary stop in service was to fix a bug in a system upgrade.
Users of cryptocurrencies are worried about the long-term viability of centralized digital asset exchanges after a big player in the market went bankrupt last week.
We are hopeful that as a community we can brave through these troubling times, together.
– AAX (@AAXExchange) November 13, 2022
The cryptocurrency exchange, which is said to have 2 million customers worldwide, said the planned system update was needed because “our third-party partner failed,” which caused “abnormally recorded balances” for some users.
As a result, it has reduced the number of services it provides “to avoid fraud and exploitation,” including suspending withdrawals for seven to ten days.
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AAX stated they have “no financial exposure to FTX and its affiliates” in a tweet back on November 11th.
“More importantly, all digital assets on AAX stay intact, with a substantial amount held in cold wallets, and user money is never exposed to counterparty risk from any financing or venture activity,” it continued.