What to know:
- AscendEX halted operations, citing MiCA compliance gaps, financial pressure, and the suspension of automated withdrawals, leaving customers awaiting manual reviews of their balances.
- According to ZachXBT, user withdrawal delays and nearly empty hot wallets intensified liquidity concerns before the exchange closed its operations officially.
- AscendEX said manual withdrawal requests remain under review while financial assessments continue, and future customer recoveries remain uncertain pending updates.
AscendEX has shut down its cryptocurrency exchange operations, leaving customers facing uncertainty over their funds as withdrawal restrictions remain in place. The exchange said it stopped operating on July 1, citing regulatory requirements, financial pressure, and a failed liquidity transaction that weakened its ability to continue serving users.
The company disclosed the decision in a July 6 notice, explaining that several factors contributed to the closure. Among them was the European Union’s full implementation of the Markets in Crypto-Assets Regulation on July 1. AscendEX said it does not hold authorization under the new framework. Additionally, the exchange pointed to financial and operational challenges that continued to affect its business.
Moreover, AscendEX revealed that a strategic transaction expected to provide additional liquidity never materialized. According to the company, the failed deal removed an important source of funding at a time when broader cryptocurrency market conditions remained difficult. Consequently, the platform said it is reviewing its financial position before determining what options remain available for customers.
The exchange also warned that some account holders may not recover their full cryptocurrency balances. Furthermore, it said account access is now limited to offboarding activities while automated withdrawals remain suspended.
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Manual withdrawals continue as liquidity concerns deepen
AscendEX said customers can still submit withdrawal requests, although every request now requires manual review. Therefore, processing times may vary, and the company declined to guarantee either payment timelines or the final amounts users could receive. It also stated that no customer or group of customers will receive priority during the review process.
Meanwhile, concerns over the exchange’s liquidity surfaced before the official shutdown announcement. According to on-chain investigator ZachXBT, multiple users had already reported withdrawal delays lasting several days or even weeks. He shared those observations through Telegram while monitoring activity linked to the platform.
According to ZachXBT, an examination of AscendEX’s hot wallets showed very limited reserves of major cryptocurrencies, including Ethereum, USDT, USDC, and Solana. Those findings raised questions about the exchange’s available liquidity before operations officially ended.
Additionally, ZachXBT encouraged affected users to file reports with financial regulators and law enforcement agencies. He said official complaints could help authorities investigate the situation and determine whether further action is necessary.
AscendEX also has a history of security incidents. The exchange, which launched in 2018 under the BitMax brand, lost approximately $78 million during a cyberattack in 2021. Although the platform recovered from that incident, it later faced mounting operational and financial challenges.
Conclusion
AscendEX said it will provide further updates once it completes its financial assessment. Until then, customers must wait for additional guidance as manual withdrawal reviews continue and the company evaluates the next steps for unresolved account balances.
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