CustodyStress
Archive › Vendor lockout
Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01011

AAX Exchange suspended withdrawals on 13 November 2022, citing a 'system upgrade,'

Blocked
Case description
In the weeks following FTX's collapse, several smaller exchanges and lending platforms that had significant FTX exposure—including Liquid Global, AAX Exchange, and Bitfront—also suspended withdrawals. AAX Exchange suspended withdrawals on 13 November 2022, citing a 'system upgrade,' and subsequently went silent. Customers of these secondary platforms found themselves doubly blocked: their primary exchange (FTX) had collapsed, and the knock-on effects had frozen assets at their backup platforms.
Custody context
Stress conditionVendor lockout
Custody systemExchange custody
OutcomeBlocked
DocumentationUnknown
Year observed2022
CountryInternational
Structural dependencies observed
Institutional cooperation required
What this illustrates
Getting access back required help from an institution — and that help wasn't available. Access was not recoverable.
Outcome interpretation
Access was not possible under the reported conditions.
Source
Publicly Reported
Evidence type
News article
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Framework references
Terms guide
Survives
Access remained possible under the reported conditions.
Constrained
Access remained possible, but only with delay, dependence, or significant difficulty.
Blocked
Access was not possible under the reported conditions.
Indeterminate
There was not enough information to determine the outcome.
Single-person knowledge
Recovery depended on information or capability held by one individual who was unavailable.
Institutional dependence
Recovery depended on a third-party institution or service that was inaccessible or uncooperative.
Documentation gap
Recovery depended on instructions that were missing, incomplete, or unclear.
Authority mismatch
The person with legal authority to act did not have operational access, or vice versa.