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.
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
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.