What is AEX exchange and why has it suspended operations?

The cryptocurrency world can be a mixed bag on any given day. Last week, the Celsius (CEL) crypto gained heavily even in the midst of Celsius Network’s bankruptcy filing, which followed the earlier announcement of suspension of operations.

Notably, cryptos operate 24×7 and over the last weekend, most cryptoassets, led by Ethereum (ETH), gained. However, amid this positive news, another crypto market participant, AEX exchange has announced the suspension of services. Let us explore in detail.

What is AEX crypto exchange?

AEX began operations in 2013, and it claims to be one of the first exchanges to allow trading in cryptos. It describes itself as a “cryptocurrency commercial bank”. On its official website, the exchange claims to have procured the money services business (MSB) licence, both in Canada and the US. It boasts over 1 million “cumulative users”, to whom it provides over 300 crypto trading pairs.

The AEX crypto exchange also talks of being an asset management service provider. The scope of operations, according to the official website, covers DeFi, NFTs, DAO, and many more blockchain-related investment and “derivative” services.

AEX suspends operations

A short blog on the website informs about the suspension of services by AEX exchange, with effect from July 17. The reason mentioned is “cooperation with the police investigation”. Ironically, what preceded the news of suspension was the unblocking of one FTN token, which trades on AEX.

No details have yet been provided about the scope of the police investigation and when can AEX users expect the resumption of operations.

Also read: Uniswap’s fall and rise: The complete saga and what does it indicate?

Similar instances

The AEX crypto exchange is not the only market participant that is feeling the heat of the crypto market meltdown. On previous occasions, a few others, including Celsius and Voyager, have announced bankruptcy, while one Singapore-based hedge fund Three Arrows was ordered liquidation by court.

AEX is not a major exchange like Binance or Coinbase, however, any news of suspension, coupled with a police investigation, can trigger negative sentiments.

Crypto prices

Bitcoin (BTC) is struggling at US$20,000 price level over the past few weeks, and Ether and other major cryptos have also suffered losses in 2022. Some optimism was seen when Ether jumped over the weekend. Overall, the ongoing year has brought many fears to the fore, with cryptoassets’ price volatility now compelling new enthusiasts to think twice before taking a plunge.

Bottom line

The AEX exchange’s suspension can likely add to the woes of the cryptoverse. Additionally, the announcement talks about a police investigation, the scope of which is yet to be known. Nor is there any indication of how long the suspension of operations will last.

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