AscendEX Halts Services Amid Withdrawal Uncertainty As ZachXBT Flags Depleted Hot Wallets

Centralized cryptocurrency exchange AscendEX has ceased all business operations, the company confirmed in an official announcement. The platform, which was once ranked among the top ten exchanges globally by trading volume, cited the full implementation of the EU Markets in Crypto-Assets Regulation (MiCA) — under which it holds no authorization — alongside broader regulatory, financial, and operational pressures as the driving factors behind the decision. The company also disclosed that a strategic transaction intended to provide platform liquidity had failed after the counterparty did not perform, compounding existing financial strain.

As of July 6, all withdrawal requests are subject to mandatory manual review, with automated withdrawals suspended. In its announcement, AscendEX acknowledged that requests “may be delayed, may require additional information, or may not be processed,” stopping short of offering any assurances on timing or amounts. The platform stated it is assessing its financial position and exploring available options, warning that a formal insolvency process may follow, which would subject unresolved balances to further proceedings. Users have been directed to submit withdrawal requests only through official platform channels and are urged not to make new deposits.

ZachXBT Flags Liquidity Gaps

The shutdown came after blockchain investigator ZachXBT raised public warnings about the platform, reporting multiple user complaints of delayed or unprocessed withdrawals. He noted that AscendEX’s public hot wallets appeared to lack liquid assets — including ETH, USDT, and SOL — and subsequently verified user claims amounting to multiple seven figures. Following the official closure announcement, ZachXBT confirmed the wallets still lacked sufficient liquidity to fulfill outstanding withdrawal requests and urged affected users to file reports with law enforcement and regulators in their respective jurisdictions, naming co-founder George (Jing) Cao as a party to be held accountable.

Founded in 2018 under the name BitMax by Cao and Ariel Ling, AscendEX raised a $50 million Series B round in 2021 led by Polychain Capital and Hack VC. The exchange had already faced a significant setback in December 2021 when it suffered a hack attributed to the Lazarus Group, resulting in approximately $78 million in losses. The latest developments mark a stark reversal for a platform that once attracted top-tier institutional backing and held a prominent position in the global crypto exchange landscape.

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