This Crypto Exchange Just Suspended Withdrawals – What is Going On
Crypto exchange AAX announced that it has suspended activity for up to 10 days due to a “scheduled system upgrade” that happened during a difficult time for the industry and the markets.
AAX’s website currently displays a notification that states,
“The current system upgrades require our third-party partner to proofread and restore all users' asset data. Due to the current market situation, the integration is taking longer than usual and is now in the queue to be completed within 7-10 days.”
The company published a blog post on Sunday, stating that crypto users are “rightfully concerned” about the operational and financial stability of centralized cryptoasset exchanges, “in light of the insolvency of one of our industry’s largest players last week.”
It is referring to the now infamous fall, and subsequent bankruptcy, of the major crypto exchange FTX that shook the cryptoverse and caused a contagion spreading across the space.
The exchange stated that,
“AAX scheduled a system upgrade that will help protect our users from the multiple malicious attacks that we’ve observed during this vulnerable time.”
It went on to cite a “failure of our [unnamed] third-party partner” that resulted in some users' balance data being “abnormally recorded” in the system. Therefore, claimed the team, they decided to limit the services to prevent additional risks, meaning that “the technical team has had to manually proofread and restore the system to ensure maximum accuracy of all users’ holdings.”
As to how long this will last, it added that,
“AAX will continue our best efforts to resume regular operations for all users within 7-10 days to ensure the utmost accuracy. In this light, withdrawals have been suspended to avoid fraud and exploitation.”
Ben
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