Navigating Turbulent Times
11 Nov 2022
In light of the recent insolvency of one of the more respected institutions in our industry, we understand and sympathize with the public’s loss of confidence in cryptocurrency exchanges.
We therefore hope to assure you of the existing measures AAX has in place to safeguard your digital assets and we express our appreciation for your continued trust in us.
AAX has no financial exposure to FTX and its affiliates. More importantly, all digital assets on AAX remain intact with a substantial amount stored in cold wallets, and user funds are never exposed to counterparty risk from any financing or venture activities.
We are in the process of exploring Merkle Tree Proof-of-Reserves, an independent and algorithmic audit by a third party to ensure that every user’s balance is accounted for in our reserves. We seek to provide the highest level of transparency on our liquidity and risk management.
Meanwhile, all AAX products and features remain operational and unaffected, so you can continue to trade without interruption.
As per our usual operational practices, AAX will continue upgrading our security controls to prevent malicious attacks, especially under vulnerable market conditions. These measures are in place to provide our users with the most secure trading environment.
At AAX, we understand digital assets are volatile and carry comparable risks to traditional financial markets. Still, we see it as our mission to provide a safe and secure exchange for all to embrace this new asset class without being exposed to uncertainties that can be minimized or avoided altogether.
“From the early days of Mt. Gox and the DAO Hack to Luna, this industry is no stranger to setbacks and crises,” Ben Caselin, Vice-President of AAX stated.
”But liquidity crises and bank runs are seen in traditional finance as well. So while we must acknowledge and build on the mistakes or misdoings of industry predecessors, as a community we also need to work towards a culture less driven by speculation and emotion and more by healthy skepticism and with a stronger commitment to the core principles that underpin the creation of bitcoin as a pathway to sound decentralized finance.”
We are optimistic as we continue building our platform, engaging new markets, and expanding our operations. And we thank you again for being on this journey with us. We will continue to drive forward together by protecting our users as our highest priority.
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