Cryptocurrency exchange AAX faces bankruptcy

Following the recent suspension of all operations with digital assets, the AAX cryptocurrency exchange has published a statement that it may resume its operations. According to the exchange’s employees, this will happen in case of raising additional capital.

«We believe that AAX has the potential to withstand this incredibly difficult time for the entire cryptocurrency market, a time when not only our users but also our team and business are suffering. We want to restore the trust of our customers and are fighting to ensure that our crypto community feels protected and confident that we will get out of this difficult situation,» the cryptocurrency exchange said in a press release.

If AAX manages to find new investors by the end of this week, it will be able to operate as usual again. If not, the exchange will start legal procedures to ensure the distribution of assets.

In a press release, exchange representatives emphasized that the collapse of the FTX crypto exchange did not lead to the compromise of assets, but some of AAX’s investors still wanted to withdraw their capital. This has created additional risks for the crypto exchange, so AAX is seeking to cover the funding gap as soon as possible. The cryptocurrency exchange assured that the processing of client withdrawal requests will begin as soon as the team fixes the problem.

Earlier, we talked about a recent study by Coinbase Research, where cryptocurrency experts predicted long-term problems for the industry that could reach 2023. Analysts suggest that market turbulence and the lack of large investors investing in digital assets could prolong the already long cryptocurrency winter.