Cryptocurrency exchange AAX is seeking new capital to resume all of its services shortly after the platform suspended withdrawals for users, citing a system upgrade failure related to a third-party provider.
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Now, the exchange said in a blog update that it needs new funding and the amount "is not large by market standards," without detailing the sum. AAX claims that its existing shareholders have contributed additional capital over the past week and the exchange has "secured interest on new investments."
"At this stage, we estimate that on top of our liquidity, we are in a good position to get our operations and services fully up and running," the exchange said.
AAX plans to start legal procedures to distribute assets with its global user base should it fail to secure funding needed to "restart operations." Until then, AAX won't reopen withdrawals for its customers.
Earlier, AAX said that its third-party partner had failed to conduct a scheduled system upgrade, resulting in abnormal data recording in the database. In order to avoid "fraud and exploitation," AAX halted withdrawals for 7-10 days to ensure the "utmost accuracy."
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