AAX crypto-exchange suspends withdrawals due to ‘system update glitch’

Crypto-exchange AAX has suspended withdrawals due to a system update error. The failure of a third-party partner caused some users' balances to be recorded incorrectly, the company explained. It will take up to ten days to resume operations.

AAX crypto-exchange suspends withdrawals due to ‘system update glitch’

In a statement, the exchange explained that it had planned a system upgrade to protect against malicious attacks, which it has seen "in these turbulent times" in light of news of the insolvency of "one of the biggest players in the industry". Due to the outage, the exchange's technical team had to manually adjust and restore the system.

Operations on the bourse are expected to resume within 7-10 days, with withdrawals suspended to avoid fraud. The company has also created a withdrawal request form for users. The customer support team will resolve the requests manually one by one. The exchange warns that manual withdrawals will take longer than usual.

Finally, AAX has set up an operations team that will monitor the situation and provide daily updates on social media and Telegram channel, including the status of daily withdrawals and the progress of system updates.

"Please also note that no one from AAX or any of our affiliated partners will ever ask you for your account passwords, 2FA codes or any information that could compromise access to your funds. However, manual withdrawal requests will require UID information and relevant user verification information such as a copy of your ID card and registered contact details," the exchange reminds.

"One of the industry players" that AAX mentions is apparently the FTX exchange that collapsed last week. On 9 November, Binance announced that it plans to buy one of its main competitors, FTX. Binance founder Changpeng Zhao revealed on Twitter that the company had signed a letter of intent.

Earlier in November 2022

On November 10, Binance withdrew it and declined to buy FTX. The next day FTX declared bankruptcy. On 12 November Reuters learned that $1 billion in customer funds had disappeared from the crypto-exchange.

On 8 November 2022, Binance CEO Changpeng Zhao announced his intention to acquire the FTX crypto exchange in a strategic deal. According to him, FTX approached Binance for financial assistance due to the company's liquidity shortage. Prior to the strategic agreement with Binance, FTX had sought other sources of investment and intended to raise between $10 billion and $20 billion to stabilise its financial situation.

Binance later withdrew from the purchase of FTX following a due diligence review of FTX and amid news of FTX's misuse of investor funds and the launch of a suspected investigation into FTX by US regulators. On 11 November, the Bahamas Securities Commission froze the assets of FTX Digital Markets, the operator of the FTX crypto exchange.

Business and Finance terms

Withholding Tax General Accepted Accounting Standards Letter Of Intent Scarcity Year-to-date Long-Term Liabilities Non-Disclosure Agreement Chief Operating Officer Return on Investment Chief Marketing Officer Chief Financial Officer Asset Protection Trust Chief Security Officer Certified Financial Planner Electronic Funds Transfer Limited Liability Company Close of Business Company Finance Cash Flow Automated Teller Machine Return on Equity stagnation Certified Management Accountant Non-Profit Organization Certified Financial Manager Chief Technology Officer Profit and Loss Profit and Loss Statement Gross Margin