AAX says the suspension is for maintenance. However, that's not the real story.

Integration Issue or Fraud Issue?

An AAX notice says "Due to the current market situation, the integration is taking longer than usual." Is this an integration issue or something else?

At AAX, we have always put our users first, and here we would like to share with you the following updates regarding our current situation.https://t.co/eStF80TBS2

— AAX (@AAXExchange) November 13, 2022

Please consider the AAX announcement, Forward Through Adversity:

1. AAX scheduled a system upgrade that will help protect our users from the multiple malicious attacks that we’ve observed during this vulnerable time. Due to the failure of our third-party partner, some users' balance data were found abnormally recorded in our system. Hence, limiting our services to prevent further risks, the technical team has had to manually proofread and restore the system to ensure maximum accuracy of all users’ holdings.
2. AAX will continue our best efforts to resume regular operations for all users within 7-10 days to ensure the utmost accuracy. In this light, withdrawals have been suspended to avoid fraud and exploitation. We understand it is important for users to be able to withdraw and transact as soon as possible, and we are working extremely hard to offer limited withdrawals to minimize risk.
3. Meanwhile, we have created an AAX User Withdrawal Request Form for withdrawal and other operational requests. Our Customer Service Team will follow up and strive to resolve the requests manually one by one in close coordination with our security, operations and compliance team to ensure a smooth process. Expect manual withdrawals to take longer than usual.
4. AAX has set up a dedicated Task Force to closely monitor the situation and provide daily updates everyday at 12:00pm (UTC+8) on our official social media and telegram communities, including the status for daily withdrawals and the progress of our system updates. And we seek to provide the highest level of transparency on our liquidity and risk management.

"Due to the failure of our third-party partner, some users' balance data were found abnormally recorded in our system."

Breaking: AAX, a derivatives exchange established in Hong Kong in 2019, suddenly announced that it would suspend all operations, including trading, withdrawals, etc. It will take 7-10 days to proofread and restore user assets. AAX's trading volume ranks in the top 20 in coingecko pic.twitter.com/D3h7RKTAIO

— Wu Blockchain (@WuBlockchain) November 13, 2022

Questions Abound

• How long has this been going on?
• Did any money leave the exchange? 
• Proofread accounts! WTF does that even mean? 
• If money was stolen, how much?
• Who is the third party?
• Why did a third party have the access that it did to manipulate account data?

Beat the Rush

Consider using the AAX User Withdrawal Request Form to get your funds out now. But don't be surprised if it's too late already. And by the way, due to the third party hack, consider the possibility someone has access your userID, email address, phone number, etc.

Blaming a third party is lame. Who gave access to the third party?

FTX Apology Isn't Good Enough

Sam Bankman-Fried’s FTX apology isn't nearly good enough https://t.co/X5q1QB7gkT

— Bloomberg Opinion (@opinion) November 12, 2022

Is fraud a better word than hollow?

i'm pretty sure there was a gaping balance sheet hole at FTX for a long time first

and I concur that Binance is likely a hollow shell too

tl;dr they're all Quadriga, they just haven't all exploded yet

— your #1 source for absurdist true crime 🐀 🐍👑 🌷 (@davidgerard) November 10, 2022

For more on the unraveling of crypto exchanges, please see "The Crypto Casino Fails, FTX Files for Bankruptcy $8 Billion in the Hole." Also see "FTX US Declares Bankruptcy Too, What About the FTX Arena?"

I smell criminal indictments and lots of them. This time don't expect bailouts.

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