Hong Kong-based crypto exchange AAX has announced that its suspension of withdrawals on its platform has nothing to do with the market crash following the FTX crisis.
The crypto community reported seeing a “system upgrade notification” message on Nov. 13, which states that a system update may take longer than usual and will delay withdrawals. Others began to worry about whether there would be a domino effect to the AAX exchange after FTX and BlockFi.
However, AAX reiterated in a November 13 statement that the temporary suspension of withdrawals is to fix a malfunction in a system upgrade.
The exchange noted that it is understandable that the suspension of withdrawal processing has caused users to panic.
“As a result of the bankruptcy of one of our industry’s biggest players last week, crypto investors are rightly concerned about the operational and financial stability of centralized digital asset exchanges,” AAX said.
We are hopeful that as a community we can brave through these troubling times, together.
— AAX (@AAXExchange) November 13, 2022
As a result, AAX has limited a number of its services to suspend withdrawals from seven to ten days to prevent possible scams and cyber attacks.
AAX vice president Ben Caselin shared a post on Twitter on November 13, acknowledging that the update was made at an inappropriate time. Caselin also underlined that this update was made to prevent serious security vulnerabilities.
Bad timing for a scheduled maintenance at @AAXExchange, aimed to address serious vulnerabilities, to be prolonged for more than 24 hours. Out of extra precaution this will take longer. Wait for official announcement.
— ₿en Caselin HODL (@BenCaselin) November 13, 2022
Caselin also stated that it is not easy to launch such an update at a time when fear dominates the crypto market.
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In a Twitter post shared on November 11, AAX stated that the stock market was not affected by the collapse in FTX.
AAX also said, “More importantly, all digital assets in AAX and large sums stored in cold wallets continue to be kept intact. User funds are never exposed to counterparty risk from any financing or venture activity.