- ZachXBT says AscendEX withdrawals remain delayed while deposits are still accepted.
- Wallet reviews raised questions over the exchange’s liquid reserves and response capacity.
- Unprocessed withdrawals have renewed scrutiny of transparency across centralized exchanges.
Crypto exchange AscendEX faces scrutiny after users reported withdrawals remaining unprocessed for days or weeks, while deposits were accepted on the centralized exchange. On-chain investigator ZachXBT said the platform had not posted on X for nine days following his warning, despite continuing complaints from affected customers.
AscendEX Withdrawal Delays Raise Liquid Reserve Questions
In a Telegram update, ZachXBT said he reviewed a case involving a victim who received no response from co-founder George Jing Cao. He advised users with trapped funds to report their cases to law enforcement agencies and financial regulators within their jurisdictions.
The latest warning followed a June 26 community alert covering reports of delayed, incomplete, or unprocessed withdrawals from AscendEX, formerly known as BitMax. ZachXBT said a review of hot wallets through Arkham and TRM showed limited holdings of major liquid assets, including ETH, USDT, and SOL.
In essence, centralized exchanges depend on liquid reserves to complete customer withdrawals quickly, especially when users request widely traded assets during periods of elevated demand.
A shortage, nonetheless, can slow transaction processing, although AscendEX has not confirmed ZachXBT’s claims or publicly addressed the reported reserve concerns. The on-chain sleuth also questioned the exchange after it promoted a new token listing on X while users continued reporting unresolved withdrawal requests.
In a public reply, ZachXBT asked why customers faced delays and why identified hot wallets appeared to lack readily available liquid assets. He then warned users against depositing funds until the exchange provided clear answers about withdrawal processing and reserve availability.
Unprocessed Withdrawals Put Exchange Transparency Under Scrutiny
The AscendEX complaints followed similar concerns involving JuCoin earlier in June, when users also reported withdrawal delays and questioned reserve quality. At the time, JuCoin attributed those delays to platform upgrades and restructuring, while users continued seeking clearer evidence regarding the exchange’s available reserves.
Together, the cases show why withdrawal performance remains a crucial trust measure for centralized exchanges holding customer funds. After submitting a request, users generally expect both a blockchain transaction identification number and a clear processing timeline.
However, when account balances fall without a corresponding on-chain transaction, customers have few reliable ways to confirm whether their withdrawals are progressing. As a result, the unresolved AscendEX reports have intensified attention on reserve transparency, customer communication, and the timely release of funds.
Related: ZachXBT Warns AscendEX Delaying Withdrawals Due to Liquidity Issues
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