ZachXBT Sounds Alarm Over AscendEX as Users Struggle to Withdraw Funds

Blockchain investigator ZachXBT has raised fresh concerns about the liquidity of cryptocurrency exchange AscendEX, as users report significant delays and failures in withdrawing their funds. The exchange announced on July 1 that it would cease operations, citing challenging market conditions and the European Union’s Markets in Crypto-Assets (MiCA) regulation, which has forced many crypto firms to exit the region after failing to obtain required authorization.

Following the announcement, account access was limited to offboarding processes, and automated withdrawals were paused. The exchange stated that all withdrawal requests would now undergo manual reviews and could be delayed, require additional information, or fail. “We are not in a position to give assurances about timing or amounts today,” the exchange noted.

ZachXBT, a prominent on-chain analyst, shared on Telegram that several users had experienced withdrawal delays for days or weeks, with some requests not being processed at all. His analysis of AscendEX’s hot wallets revealed almost no reserves of major assets such as USDT, ETH, USDC, and SOL, leading him to believe the platform is facing severe liquidity challenges. Community reports corroborated the situation, with many users reporting transactions stuck in “initiating” status for over a week. In a follow-up post, ZachXBT claimed that the platform has yet to process over seven figures worth of transactions for its users. He urged affected parties to file police reports and contact relevant regulators to hold the exchange accountable.

AscendEX, founded in 2018 by George (Jing) Cao, was once a major crypto platform but suffered a $78 million hack in December 2021. In its shutdown statement, the exchange confirmed that financial and operational issues heavily influenced its decision, explaining that a strategic transaction meant to provide liquidity had failed. Market conditions also contributed to the pressure. The firm advised users to forward complaints through official channels and said it would notify them of any next steps should insolvency proceedings be initiated.

Source: https://cryptopotato.com/zachxbt-sounds-alarm-over-ascendex-as-users-struggle-to-withdraw-funds/