Blockchain investigator ZachXBT has raised concerns about AscendEX after numerous users reported difficulties withdrawing their funds following the exchange’s decision to cease operations.
The platform officially stopped operating on July 1 after the European Union’s transition period for the Markets in Crypto-Assets (MiCA) regulation ended, prompting the exchange to begin winding down its services.
Withdrawal Delays Spark Liquidity Concerns
In its announcement, AscendEX said challenging market conditions and the implementation of MiCA made it impossible to continue operating without the required regulatory approval.
As part of the shutdown process, the exchange restricted account access to offboarding activities and suspended automated withdrawals. Customers seeking to withdraw assets must now go through a manual review process, which the company warned could result in delays, requests for additional documentation, or unsuccessful withdrawal attempts.
AscendEX also acknowledged that it could not guarantee when withdrawals would be completed or whether the full requested amounts would be processed, adding that all requests would be reviewed under the same procedures without preferential treatment.
Before the official announcement, ZachXBT had reported on Telegram that several users had already been waiting days or even weeks for withdrawals, with some requests remaining unprocessed. After examining the exchange’s on-chain wallets, he claimed that AscendEX held very limited reserves of major assets, including USDT, USDC, ETH, and SOL, leading him to question the platform’s liquidity.
Community members echoed those concerns, with many saying their withdrawal requests had remained stuck in an “initiating” status for more than a week.
In a subsequent update, ZachXBT alleged that the exchange still had more than seven figures worth of pending customer withdrawals awaiting processing. He encouraged affected users to report the matter to local law enforcement and financial regulators in an effort to hold the company accountable.
Exchange Cites Financial Challenges
Founded in 2018 by George (Jing) Cao, AscendEX was once a prominent cryptocurrency exchange. The platform suffered a major setback in December 2021 after hackers stole approximately $78 million in digital assets.
In its latest statement, the company acknowledged that its closure was driven by mounting financial and operational difficulties. It revealed that a planned strategic transaction intended to improve liquidity ultimately failed, while broader market conditions further strained its finances.
AscendEX said it is currently evaluating its financial position and the available options for customers. The company advised users to submit complaints through its official support channels and stated that it would provide further updates if formal insolvency proceedings are initiated.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
