11-17-2022 icon

AAX trading protocol halts outgoing transaction

By Lucy Adegbe

Hong Kong-based digital currency trading protocol AAX has restated that a halt in its outgoing payment transaction option is fully unrelated to the recent FTX crash, contrary to hearsay.

Some crypto participants cited a November 13 transmitted system update notice which highlighted an unusually prolonged update, prompting a delay in outgoing payment transactions. A few speculated that the trading protocol might be next in line to crash, after FTX and BlockFi.

Nonetheless, the protocol took to its official website, on Sunday, emphasizing that the momentary pause in outgoing payment transactions was due to an improvement in its system update.

In more comprehensive details, the protocol says its system update fix is focused on the oversight of its “third party partner” which caused an error in their customer’s balance document.

AAX noted that the concerns raised over its action to briefly suspend outgoing transactions on Sunday are fully justified.

Following the liquidation of a prominent “industry player” the previous week, digital currency customers are justifiably worried about the functional and monetary position of centralized trading platforms, AAX explained.

AAX assured its customers that the protocol halt is only related to its attempt to fix vulnerabilities in its platform and that all crypto properties in its custody are whole with a large portion kept in cold wallets. 

Contagion-related concerns have made many industry participants endorse the action of withdrawing holdings from centralized trading platforms into non-custodial wallets.