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 May 9, 2023 at 4:03 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

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.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.

Jack Schickler

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


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.