Is AAX Exchange the Next Exit Scam in Crypto Sector?

YEREVAN (CoinChapter.com) – Former AAX executive Ben Caselin left the company, as he announced on Nov 28, citing “hollow” communication. The ex-vice president for global marketing and communications asserted that he fought for the community, but the latter accepted “none of [his] initiatives.”

He also blamed the exchange for lacking “empathy” and being “overly opaque.”

During these years, AAX stood for something, but all that is now hollow. I have disabled a lot of my social media because too many people believe I can solve the issue, but I cannot. This is for the founders and board. I will continue to follow. And continue to hope.

tweeted Caselin.

AAX Traders Suspect Exit Scam

AAX traders could argue that the trust has been broken since Nov 13, when the exchange initially halted all withdrawals.

Withdrawals have been suspended to avoid fraud and exploitation. AAX will continue our best efforts to resume regular operations for all users within 7-10 days to ensure the utmost accuracy. […] We also want to be clear that no funds have been compromised.

reported the exchange at the time.

Moreover, the team denied any FTX affiliation, instead citing a need to fix a glitch on its system upgrade as the reason for the “temporary” halt. The exchange also announced the automatic liquidation of AAX futures positions on Nov 21 “to protect the rights and interests of users during the system maintenance period.”

However, the “maintenance period” looked more like an exit scam, as the exchange halted its official YouTube channel and Facebook account.

The comment section burst with exit scam accusations and assertions that investors are not getting their money back.

Recovery Hopes Ahead?

Meanwhile, the China-based exchange was launched in 2019. CryptoCompare ranked AAX as the second-largest spot exchange behind Binance, hitting a trading volume of $57.2 billion in July.

Fast forward to Nov 28, the exchange provided no further details via Twitter, fueling the “exit scam” fears. In the update on Nov 15, the team mentioned that “AAX has always been a prudently managed exchange.”

However, after we suspended withdrawals and in the context of the FTX saga, some of our investors indicated their desire to withdraw their capital from AAX.

mentioned the update.

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AAX further asserted that the FUD put them at risk of a “capital deficit.”

Thus, the exchange would have to “make up for it” before AAX is in a “solid enough position to resume normal operations and ensure liquidity and continuity.”Judging by the responses, traders have doubts the “solid enough position” will ever come.

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