Troubled Exchange AAX Seeks Fresh Capital After Denying FTX Link

Atom Asset Exchange (AAX), a Hong Kong-based crypto exchange, announced on Tuesday that it is seeking fresh capital to run its operations. The announcement comes just two days after the exchange halted withdrawals of users’ funds. The exchange has also denied having any exposure to the insolvent FTX.

AAX Seeks Fresh Fund

The exchange mentioned in its statement that the fund is needed to enable it “resume normal operations.” AAX cited some factors that have caused it to need additional capital. These included the recent FTX fiasco that triggered a large market selloff and a severe downtrend in the prices of crypto assets. 

Another factor that contributed to the need for extra funding was the halting of withdrawals of users’ funds. The halt led some of the exchange’s customers to request capital from the platform. The company noted that these funds need to be replaced before they can fully resume activities.

“We are committed to starting to process withdrawals as soon as we have resolved the capital shortfall,” the statement said.

Meanwhile, users’ funds remain safe with the company, the report added.

AAX Halts Withdrawals

On November 13, the Hong Kong-based exchange announced that it had paused withdrawals of users’ funds. In the report, AAX stated that the halt was a result of a scheduled “system upgrade that will help protect our users from the multiple malicious attacks” that it has seen. The company further stated that it would resume operations within 7-10 days.

In the latest report, AAX reiterated the cause of the pause of withdrawal services, where it said:

“After the collapse of FTX, we understand that our technical team had observed abnormalities in our systems with clear malicious intent which presented a threat to sensitive data in our records. For security reasons, the exchange was brought to a halt and we stopped withdrawals.”

Meanwhile, AAX stated clearly that it has no ties with the troubled FTX whose downfall has wiped out roughly $1 billion worth of users’ funds. The fall of FTX has also resulted in a downtrend in the global crypto market. Top assets such as Bitcoin, Ethereum, and Solana saw significant losses in value.

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