- ZachXBT has publicly warned that AscendEX is delaying user withdrawals amid apparent liquidity issues.
- ZachXBT said Arkham and TRM data suggest AscendEX hot wallets lack ETH, USDT, and SOL.
- This raises doubts about CEX reliability and may accelerate user migration to self-custody solutions.
ZachXBT has alerted the crypto community to possible liquidity problems at centralized exchange AscendEX. He cited multiple user reports of withdrawal delays lasting days or weeks, along with low reserves of major tokens such as Ethereum (ETH), USDT, and Solana (SOL), after reviewing the exchange’s known hot wallets on Arkham.
ZachXBT Flags AscendEX Due to Delayed User Withdrawals
On June 26, 2026, blockchain investigator ZachXBT warned about potential liquidity issues at centralized exchange AscendEX, formerly known as BitMax. Users on various platforms, such as Reddit forums, have reported that withdrawals are taking a long time to process, sometimes days or weeks, or not being processed at all.
In a follow-up post on X, ZachXBT directly addressed AscendEX, urging the team to answer two key questions:
- Why are users reporting delayed or incomplete withdrawals?
- Why do the exchange’s hot wallets currently lack liquid assets?
Why ZachXBT Suspects Liquidity Issues at AscendEX
The suspicion of liquidity issues at AscendEX is largely due to on-chain analysis of the exchange’s known hot wallets and user-reported withdrawal failures.
ZachXBT noted that, after analyzing AscendEX’s known hot wallets using the analytics platforms Arkham and TRM, the wallets appeared to lack sufficient holdings of large-cap tokens such as ETH, USDT, and SOL. He also included specific wallet addresses, indicating that the exchange might be having trouble keeping up with user withdrawal requests.
Furthermore, AscendEX’s history has added to the scrutiny. The exchange, founded in 2018 by George (Jing) Cao and Ariel Ling, suffered a roughly $78 million hack attributed to the Lazarus Group in December 2021. Although unrelated to the current withdrawal issues, the incident has renewed concerns over the platform’s operational resilience and reserve transparency.
Broader Impact on Crypto Exchange Trust
This alert adds to the growing scrutiny of mid-tier centralized exchanges (CEXs) regarding reserve transparency and withdrawal reliability. Although hot wallets are not an automatic sign of insolvency, as exchanges also use cold storage, the crypto community generally considers extended delays in withdrawals and low visible liquidity as a red flag.
In response to the conversation on the founders, ZachXBT sarcastically stated, “Perhaps all of the private jet charters and luxury goods purchases caught up to them I guess.” The comment highlighted the community’s dissatisfaction as AscendEX’s financial health continued to rise.
The incident also underscores a wider market skepticism of CEXs and strengthens the “not your keys, not your coins” mantra in the industry. AscendEX users are encouraged to make small test withdrawals on liquid networks and assets while keeping an eye on the official exchange’s announcements. At press time, AscendEX had not issued a detailed public response regarding ZachXBT’s specific allegations.
Related: ZachXBT Accuses Bitget of Enabling Scam on the Platform
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