Users of the AAX cryptocurrency exchange stormed the company's office in Lagos state over the withdrawal issue, with the startling announcement that withdrawals have been halted.
The community was notified by AAX that there is no connection between the end of withdrawals and FTX's unexpected breakdown.
Nigerian users of the popular cryptocurrency exchange AAX bombarded the firm's office located in Lagos and harassed its workers after the exchange failed to approve withdrawal, announcing abruptly that it has stopped withdrawals, according to a Dec 3rd by a vanguard Nigerian news website.
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Nonetheless, it is visible the particular moment that the issue occurred, the Nigerian Blockchcian Technology Association Stakeholders (SiBAN) denounced the attack on Nov.28. The firm implored resentful users to be calm with the exchange's employees, who have also been affected by the withdrawal freeze. SiBAN stated:
"Therefore, we appeal to and discourage any dissatisfied or angry user or investor from harassing or victimizing the AAX Country Manager (Nigeria), other local staff members, and AAX ambassadors nationwide. These persons are also facing the same situation as disgruntled users and investors are. At the time of writing this notice, we are aware that communication between these persons and AAX headquarters has been equally strained at this time. We therefore appeal for understanding and patience from all Nigerian AAX users."
The AAX drama began on the 14th of November 2022 when the exchange stopped withdrawals-- this particular act got users angry, highlighting a problem in its system development. AAX informed the community that the cessation of withdrawals has no link with FTX's sudden meltdown, dismissing any sort of affiliation with the beleaguered exchange.
The AAX team mentioned on the 15th of November that it had an ongoing process to generate extra capital, gathering extra capital, as customers had been getting their assets amid distress that it could get further affected by the FTX's downfall. The SiBAN mentioned it:
"Considering that AAX’s system upgrade came at a time FTX collapse is still causing a contagion effect on the entire crypto industry, AAX’s timing of its system upgrade was suspicious and questionable in the first place. Consequently, for many AAX users and members of the public, the prolonged AAX system upgrade till the time of writing this notice significantly raises more questions than answers. And AAX, contrary to its promise to maintain a daily update of the situation, has so far neglected or failed to maintain the trust and confidence of its users."
A good number of firms have been closing up because of their attachment to FTX. This is the reason why AAX exchange customers got provoked to have reacted that way. The losses have been compiling and the market has not been anything positive for cryptocurrency exchange. Customers have become weary about the activities of crypto exchanges and a good number of these customers are keeping tab on their funds so as not to find themselves in the same situation as some FTX customers.
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