Hong Kong-based crypto exchange Atom Asset Exchange (AAX) is likely to end operations and restructure, its former vice president and head of strategy, Ben Caselin, told CoinDesk TV on Wednesday in his first interview since he announced his resignation on Monday.

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Fast facts

  • The exchange deleted its social media accounts and froze services on Nov. 13 following what it called a malicious attack that left it unable to verify customer balances and allow withdrawals. AAX added that resuming withdrawals would put the exchange at risk of capital deficit. 
  • The company stated on Nov. 19 that it was speaking to investors and saw the chance of a return to normal operations, but Caselin said that was not his observation at the time of his departure. 
  • “I think that it is a much more likely scenario that the company moves to a more legal procedure of unfolding,” said Caselin, explaining that initial talks with investors and rescue initiatives had stalled prior to his resignation.
  • Forkast emailed a press contact at AAX for comment but did not receive a response. Two email addresses of formerly verified AAX employees were found to be discontinued.
  • AAX is the latest in a series of liquidity crunches following Sam Bankman-Fried’s FTX exchange filing for bankruptcy on Nov. 11 and freezing accounts and funds for as many as a million users. Cryptocurrency exchange BlockFi declared bankruptcy on Tuesday. 

See related article: AAX crypto exchange says it is suspending withdrawals amid FTX fallout