Crypto exchange AAX’s marketing exec leaves as withdrawal halt continues

abdelaziz Fathi

Atom Asset Exchange (AAX) is losing Ben Caselin, its vice president for global marketing and communications, at a time when senior executives continue to leave the crypto exchange at a critical time.

AAX

In a twitter thread, Caselin, who held senior marketing roles with the exchange since 2019, announced his resignation and cited disagreement with the management over how they are handling the current issues.

“People, including my own family ask me for help, but there is nothing I can do. Everyone is waiting on actions. I still believe things will be handled without evil intentions, but the damage is done. The brand is no more and trust is broken,” he wrote.

Caselin added that he placed a lot of trust in AAX, which was the first crypto user of the London Stock Exchange’s matching technology, and used it as a platform to educate, but the way things are handled is “without empathy and overly opaque.”

The departure comes on the heels of the Hong Kong-based company halting client withdrawals on its platform two weeks ago. At the time, AAX said the move wasn’t part of a broader limit on activity in the wake of rival FTX’s collapse, which has caused chaos in the industry. It also confirmed that it had no financial exposure to FTX and its affiliates.

Instead, the crypto exchange cited the failure of a third-party partner, which caused some users’ balance data to be improperly recorded while scheduling a system upgrade. Hence, AAX halted its services to prevent further risks, while the technical team has had to manually proofread and restore the system to ensure accuracy of all users’ holdings.

“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,” it added.

AAX also said it expects to resume regular operations for all users within 7-10 days, but its staff will then review the withdrawal requests manually one by one in coordination with the security, operations, and compliance teams. But as events unfold, the exchange acknowledged that it faced an unprecedented crisis that has led to acute pressure on AAX’s capital position.

In its latest twist, AAX said it needs to raise new capital in order to resume its services. “While this is clearly a very difficult environment in which to raise new capital, the amount is not large by market standards,” it claims.

Read this next

Digital Assets

Alameda sues Voyager Digital to recover $445 million

FTX’s failed trading arm, Alameda Research, asked a court to claw back $445 million from Voyager Digital, which it said SBF’s empire paid to the crypto lender before collapsing into bankruptcy.

Metaverse Gaming NFT

Toyota taps Astar Network to explore Web3 in grand style

Although the crypto ecosystem has faced its fair share of bumps, Japanese automaker Toyota is seemingly bullish about the space and continue to look at Web3 as a promising opportunity.

Digital Assets

Bitcoin dominates inflows into crypto funds, AuM hits $28B

As the price of bitcoin continues to consolidate around recent highs, investors expand their positions in funds designed to profit from further appreciation in the cryptocurrency.

Institutional FX

Fiserv secures major payment institution licence in Singapore

Brookfield-based financial services technology provider Fiserv Inc has obtained nod for a Major Payment Institution license in Singapore.

Institutional FX

Finalto expands NDFs line-up with Taiwanese dollar

Finalto announced today that it has expanded its non-deliverable forwards (NDFs) offering with the addition of Taiwan’s dollar to its trading platform.

Opinion

It’s time for FX to Harness Crypto’s Potential

Jonathan Cumberlidge, FX Sales Director for BVNK, makes the case for cryptocurrencies in improving the efficiency and flexibility of foreign exchange trading.

Digital Assets

Owner of OptionMint, OptionKing, and OptionQueen gets 30 months in prison

A US federal judge has sentenced Ohio resident Jared Davis, who was found guilty for his participation in a multi-million fraud scheme carried out by Israeli-run binary options websites.

Executive Moves

iS Prime co-founders Raj Sitlani and Jonathan Brewer leave, but “business as usual”

“For our clients and teams at iS Prime, iS Risk and iS Prime Hong Kong, it is business as usual. We will be increasing our investment in our technology and staff, putting our clients first as we drive the business forwards to maintain our market leadership position.”

Digital Assets

Germany-focused DekaBank taps METACO for digital asset custody offering

“Digital assets are a critical part of the future, a radical new way for how assets will be represented, from currencies to real estate.”

<