- AscendEX halted operations as manual withdrawal reviews left customers uncertain about accessing their funds.
- ZachXBT questioned AscendEX’s liquidity, saying its hot wallets may not cover verified customer claims.
- AscendEX blamed financial strain and MiCA as its closure renewed concerns over exchange stability.
Blockchain investigator ZachXBT raised fresh concerns after crypto exchange AscendEX announced it would shut down, leaving customers uncertain about whether they will be able to withdraw their funds.
In a Telegam post, he said users with money still on the platform could face challenges getting it back, claiming the exchange’s publicly known hot wallets do not appear to hold enough liquid assets to cover verified multi-million-dollar customer claims.
“AscendEX admits in its announcement withdrawals may or may not be processed,” ZachXBT wrote. He urged affected users to report the matter to financial regulators and law enforcement, while calling for co-founder George (Jing) Cao to be held accountable.
AscendEX Confirms Operations Have Ended
AscendEX said it halted operations on July 1, 2026, citing financial pressures, operational challenges, and the European Union’s Markets in Crypto-Assets (MiCA) regulation. While the exchange has stopped normal operations, it said customers can still log into their accounts to submit withdrawal requests, contact support, download transaction records, and complete identity verification.
The exchange said all withdrawal requests are now subject to manual review, with automated withdrawals remaining suspended. It said each request will undergo identity, compliance, fraud, and balance checks before any funds are released. “Withdrawals may therefore be delayed, may require additional information, or may not be processed while the review continues,” the company said.
Investigator Questions Available Liquidity
Blockchain investigator ZachXBT questioned whether AscendEX has enough liquid assets to meet customer withdrawal requests. He also said the exchange continued accepting deposits while some customers were still waiting for their withdrawal requests to be processed.
In an earlier update, ZachXBT claimed that a large customer received no response from AscendEX co-founder George Cao after raising concerns about withdrawals. Based on those claims, he urged affected users to report the matter to financial regulators and law enforcement agencies in their respective countries.
Exchange Faces Long Shadow
AscendEX was launched as BitMax in 2018 and later changed its name as it expanded its business globally. At one point, it was among the world’s largest cryptocurrency exchanges and raised $50 million in a Series B funding round in 2021.
The exchange also faced a major setback that year after losing about $78 million in a hack linked to the Lazarus Group. More recently, LAB token fell more than 82% in a single day, a crash that ZachXBT had spent months warning was coming, adding to concerns over the exchange’s future and investor confidence.
Related: SlowMist Says There Were 182 Blockchain Security Issues in H1 2026
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