AEX crypto exchange limits withdrawals after a $1 billion "bank run"

The AEX crypto exchange is among a growing number of exchanges to limit customer withdrawals amidst a crypto downturn. In an announcement, AEX wrote that "we honestly admit that AEX Global platform has met some problems, which involve a bank run of more than 1 billion USD".

The exchange then announced they would be delaying the withdrawals of most popular cryptocurrencies for 36 hours "to avoid unnecessary panic withdrawal". A follow-up blog post the next day announced they would be allowing users to withdraw, but only up to $500 a day. They later adjusted the withdrawal limits to a more flexible model, but left them in place.

As an apology to their customers, AEX promised "AEX Shareholder Badges" to the people with the most funds in their platform. They also announced a Texas Hold'em Carnival to show their "appreciation" of their users, but they canceled it the same day. Perhaps focusing on the liquidity issue is the right choice...