Atom Asset Exchange (AAX), a cryptocurrency exchange that was the first in the crypto world to use the London Stock Exchange’s trading technology, has probably gone kaput. Crypto investors, who are already incensed by the FTX implosion, are trying to reach the senior executives of the exchange, which temporarily suspended customer withdrawals last month. The development was reported by the Financial Times.
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On November 13, AAX announced the decision to temporarily halt withdrawals, citing maintenance to address vulnerabilities. However, word got out that the reason was due to a liquidity crunch. This sparked panic among investors whose money was at stake. Investors trading on AAX were disconnected from the company’s email systems without being informed of the same.
The desperation among investors highlights the dire consequences of investing in an unregulated industry. Many large investors had already withdrawn their money from AAX as soon as the FTX crash started making news.
Later in November, Ben Caselin, vice president at AAX and one of the executives on investors’ radar, resigned, citing a loss of trust in the management.
According to the fate of another crypto peer, Genesis, the developments do not bode well for investors. Last month, Genesis was also forced to halt customer withdrawals and announced that bankruptcy might be on the cards, albeit as a last resort.
