AEX: Withdrawal Delay Is Due to Medium and Long Term Allocation Assets Cannot Be Redeemed in the Short Term

According to the announcement of crypto exchange AEX, withdrawal delay is due to the medium and long-term allocation assets cannot be redeemed in the short term. AEX said that the USDT/USDC stored by AEX for mining on the Curve platform was exchanged by UST after the collapse of UST. Some third-party quantitative institutions have a certain degree of net worth withdrawal under extreme market conditions and the repayment speed of customers in the mining machine allocation business and pledge loan business has been delayed, resulting in a loss of short-term liquidity assets. AEX normally allocates assets based on 20% of short-term assets, 30% of medium-term assets, and 50% of long-term assets. Since the collapse of the LUNA project in mid-May, the total market value of AEX’s outflows of various assets has reached 450 million USDT (including the withdrawal of cooperative institutions). AEX said that the current total amount of AEX assets is still enough to redeem all users, but some medium and long-term allocation assets cannot be redeemed in the short term. These assets include third-party cooperative financial institutions (about 550 million U), mining machine assets (about 310 million U), chain Pledge mining assets (about 110 million U), external pledge loans (about 230 million U), and others. Currently, we have started to adjust the asset allocation structure and will return to normal as soon as possible. To prevent a run, AEX will suspend withdrawals of some cryptocurrencies including Bitcoin, ETH, USDT, USDC for 36 hours, and will start a new response plan within 36 hours.