HK-based crypto exchange AAX suspends customer withdrawals amid FTX collapse

November 16, 2022

By Tsering Namgyal

Hong Kong-based crypto exchange AAX has said it is stopping customer withdrawal for ten days due to a systems upgrade. It blamed the glitch on an unidentified third-party but said it has no exposure to now-defunct crypto exchange FTX.

When asked about the incident, AAX vice president Ben Caselin told NFTMetta.com that “it is a sensitive period for sure” and directed us to look at his twitter feeds.

“From my best observation,” he wrote on twitter, “it will take a few days before we can start to see things open up and be resolved. Not easy while market is fearful. For now, also for media, be a good player and give AAX time to open up gradually while ensuring absolute system integrity.

The failure of a third-party means services will be delayed for up to ten days.

On Friday, the company, however, said it has no exposure to collapsed crypto exchange FTX which filed for bankruptcy protection in the U.S on Friday and CEO Sam Bankman-Fried resigned.

FTX filed for bankruptcy protection in the U.S. on Friday, and there has also been reports of the FTX’s assets being hacked, and of the exchange having siphoning off customer funds to its prop up its trading arm Alameda Research.

AAX was launched in 2019 as the first crypto user of the London Stock Exchange Group’s matching technology. According to CoinDesk, a spokesperson of the LSEG said there were “no issues” with its systems.

About the author

Tsering Namgyal is the chief content officer at NFTMetta.com. He was previously based in Hong Kong where he covered blockchain and crypto for a leading global newswire specializing in financial regulations.