AAX has said once again that there is no connection between the withdrawal suspension it implemented and the FTX contagion.
The message explained that the relevant system upgrade was going to take more time than expected, and it also warned that withdrawals would be delayed as a result. A few people voiced their concerns about the possibility that the exchange platform was also experiencing the domino effect brought on by BlockFi and FTX. In spite of this, AAX stated more than once in the post it published on the 13th of November that the temporary suspension of its services was intended to fix a bug that was introduced by an upgrade to the system.
The response acknowledged that this was a predicament in which the customers might have become extremely alarmed. In addition, it was stated that taking into consideration the fact that a major industry participant went bankrupt the previous week, customers of cryptocurrency exchanges have every reason to be concerned about the financial and operational stability of these centralized markets for digital assets.
Despite reductions in mining capacity, the Bitcoin hash rate continues to climb upward.
The cryptocurrency exchange, which reportedly has up to 2 million customers across the globe, elaborated that the planned system upgrade counts as the consequence of their third-party collaborator, leading to the nonstandard recording of a few customers' balances in their system. The crypto exchange reportedly has up to 2 million customers across the globe. As a result, it scaled back its services to a more manageable level in order to reduce its exposure to additional risks. Additionally, it implemented a withdrawal suspension for approximately seven to ten days in order to protect its customers from being exploited or scammed.
The Vice President has acknowledged that the time is not right for the Upgrade.
Following the FTX debacle, many people within the cryptocurrency community have begun to express concerns about the spread of a contagion. In this regard, a number of people have been giving the advice to others that they should move their funds that are kept in centralized exchanges to solutions that allow for self-custody of those funds. The vice president of AAX, Ben Caselin, admitted in a tweet on the 13th of November that the time allotted for the upgrade was insufficient.
On the other hand, he specified that the respective upgrade was intended to patch a few particularly severe vulnerabilities. An earlier tweet by AAX, which was published on the 11th of this month, made it clear that the company had not had any financial dealings with FTX or any of its subsidiaries or affiliates. It was also stated that all of the AAX-based digital assets have been preserved in their entirety, with a significant portion being stored in cold wallets.