Shuttered AAX Will Close Out Derivatives, Citing ‘Chance’ of Return to Normal

The Hong Kong crypto exchange hopes to be able to raise enough capital to reopen following a hack.

AccessTimeIconNov 21, 2022 at 7:46 a.m. UTC
Updated Nov 21, 2022 at 5:42 p.m. UTC

Jack Schickler is a CoinDesk reporter focused on crypto regulations, based in Brussels, Belgium. He doesn’t own any crypto.

AAX will close out derivatives positions as it attempts to return to normal following a hack, the Hong Kong crypto exchange said in a statement posted Sunday.

“In order to protect the rights and interests of users, during the system maintenance period, AAX will automatically liquidate all futures positions on the platform,” beginning 4 p.m. UTC Monday and using prices listed on the Binance crypto exchange, the exchange said.

AAX originally announced its intention to close out derivatives contracts in a statement posted Saturday. The exchange has been shuttered since Nov. 13 after a malicious attack made it impossible to verify customer balances or allow withdrawals.

In a Nov. 15 statement the company said it hoped to raise further capital in order to reopen by the end of that week. The exchange is still apparently holding out hope, saying on Saturday that it “has a chance of receiving sufficient funding and resuming normal operations over the coming weeks.”

The move comes in a choppy period for crypto markets after the collapse of the FTX exchange, whose assets also appear to have been hacked.

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Jack Schickler is a CoinDesk reporter focused on crypto regulations, based in Brussels, Belgium. He doesn’t own any crypto.

CoinDesk - Unknown

Jack Schickler is a CoinDesk reporter focused on crypto regulations, based in Brussels, Belgium. He doesn’t own any crypto.