Crypto exchange AAX suspends all operations

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Key Takeaways:

  • The cryptocurrency exchange AAX announced a suspension of operations, citing a planned upgrade that had been postponed due to rough market situations.
  • The inability of an unnamed third party was held responsible for the suspension, which could have lasted up to 10 days.

The Hong Kong-based cryptocurrency exchange AAX has postponed withdrawals due to a “failure of our third-party partner,” which occurred when planning a system upgrade and resulted in some users’ balance data being recorded incorrectly.

The Hong Kong-based company announced Sunday that services would be delayed by up to 10 days because of the error of a third-party partner. The major competitor FTX, whose downfall has wreaked havoc on the industry, was not named by the exchange, which also claimed to have no exposure to it.

Unexpected events have been happening frequently in the world of cryptocurrencies. The falling prices and the demise of Terra caused a number of businesses to either declare bankruptcy, close, or cease operations. The cryptocurrency industry has also been shaken by the most recent collapse of the FTX exchange.

For withdrawal requests as well as other operational requests, AAX has developed a User Withdrawal Request Form. To ensure a hassle-free process, the customer service team will closely coordinate with the security, operational processes, and conformance teams as it works to manually address each request one at a time.

Crypto Exchange Aax Suspends All Operations

The company claimed that after a partner failed and the system recorded abnormal data, users’ balances had to be manually rebuilt. Ben Caselin, vice president, tweeted that the delay was being implemented as an “extra precaution” after planned maintenance.

Caselin informed the user that the maintenance would take longer and urged them to be patient. According to him, AAX will make a formal announcement and provide proof of reserves documentation.

In a statement released on Sunday, AAX claimed that it had no financial ties to FTX or any of its associates and that all of its digital assets, the majority of which were kept in cold storage, were still intact.

Every day at noon (UTC+8), AAX has created a specialized Task Force to keep a close eye on the predicament and post updates on their official social media and Telegram communities, including the condition of daily withdrawals and the development of the system updates.

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Aadrika Sharma
Aadrika Sharma

I enjoy writing and try to learn new things every passing day!

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