The crypto industry is currently in turmoil since FTX announced bankruptcy last week. Many crypto exchanges are currently taking precautions not to expose their clients’ accounts. This is essentially what AAX, a Hong Kong-based crypto exchange, has just announced. Indeed, the Hong Kong platform has just communicated the suspension of withdrawal operations for a period of between 7 and 10 days. This suspension of withdrawals would aim, according to the press release, to upgrade the system of the exchange. This measure is intended to protect user assets.
AAX does not want to take any risks after the bankruptcy of FTX
Since FTX went bankrupt, nothing is going well in the crypto industry. The repercussions go beyond Sam Bankman-Fried’s company. The latest platform to get scared is AAX. The company would have apprehended user balance data recorded in an abnormal way by the system. This incident allegedly occurred following a failure of a third party partner that AAX did not want to quote. Once the malfunction was noted, the company would have restored this data manually.
AAX says found and restored manually some abnormally recorded user balance data in its system due to the failure of an unnamed third-party partner.
After the finding of vulnerability on the AAX platform, the closing measures would have been taken. The company has just announced that it will reopen access gradually to avoid any unpleasant surprises. Ben Caselinthe Vice President of AAX, acknowledged in a tweet that it was a “bad timing for scheduled maintenance at @AAXExchange, aimed at addressing serious vulnerabilities…Given the industry’s already frightening circumstances, opening will require some caution and be gradual, as sentiment cools”
Conclusion
This problem of bad data raises the question of the security of digital assets in general. The current context gives more weight to crypto skeptics like Brad Sherman. The representative to the American congress has also spoken on the FTX affair, he asks for an aggressive approach against the risk of cryptos. It goes without saying that a kind of fear and distrust now inhabits crypto exchange platforms, the FTX crisis will certainly have more impact than expected.
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