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Amid fallout from FTX, the AAX crypto exchange says it is suspending withdrawals

According to a formal statement released Sunday, Hong Kong-based cryptocurrency exchange AAX said it is postponing withdrawals for seven to ten days due to a planned system upgrade to safeguard users.

According to AAX, it discovered and manually fixed some user balance data that had been erroneously recorded in its system as a result of an unnamed third-party partner’s failure.

A major portion of AAX’s digital assets are kept in cold wallets, and the company claims it has no financial exposure to FTX or its affiliates.

FTX, a cryptocurrency exchange with a one-time market cap of US$32 billion, filed for bankruptcy in the US this week, and CEO Sam Bankman-Fried resigned as a result.

It was revealed following FTX’s demise that the exchange had been used consumer funds to support Alameda Research, a sibling trading company.

More than US$600 million was reportedly stolen last Friday from FTX’s cryptocurrency wallets, according to other reports.

 

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