Key Takeaways
- Blockchain sleuth ZachXBT has raised red flags about AscendEX following numerous reports of withdrawal delays spanning days to weeks
- Analysis of publicly identified hot wallets reveals minimal holdings of major cryptocurrencies including ETH, USDT, USDC, and SOL
- The exchange has remained silent on the mounting liquidity questions
- AscendEX suffered a security breach resulting in approximately $78 million in losses back in December 2021
- Scammers are now preying on affected users with fraudulent fund recovery schemes
Prominent blockchain investigator ZachXBT has issued a public warning regarding centralized cryptocurrency exchange AscendEX, suggesting the platform could be experiencing liquidity challenges following numerous user complaints about withdrawal requests remaining unprocessed for extended periods.
According to ZachXBT’s analysis using blockchain analytics tools Arkham and TRM, the exchange’s publicly identified hot wallets show concerning gaps in major cryptocurrency holdings. The wallets examined reportedly contain insufficient amounts of essential assets like ETH, USDT, USDC, and SOL — cryptocurrencies one would typically expect a operational exchange to maintain in adequate quantities.
“I have observed multiple reports that the centralized exchange AscendEX is delaying user withdrawals for days or weeks or not processing withdrawals,” ZachXBT stated in his Investigations Telegram channel.
His analysis included examination of wallet addresses across EVM-compatible chains, Tron, and Solana networks.
Interpreting the Blockchain Evidence
It’s important to understand the limitations of hot wallet analysis. These wallets typically contain operational funds for routine transactions, while most exchanges secure the majority of customer assets in cold storage wallets that are frequently unlabeled and difficult to trace on public blockchains.
While depleted hot wallet balances are certainly a warning sign, they don’t definitively establish insolvency by themselves. ZachXBT carefully characterized the situation as “likely” indicating liquidity problems, avoiding absolute conclusions.
However, the growing chorus of user grievances strengthens these concerns. Numerous customers report withdrawal requests stuck perpetually in an “initiating” status for weeks on end, never generating transaction hashes. Additional users describe having requests canceled without any explanation provided.
Multiple affected parties also indicate that customer support tickets receive only cursory acknowledgment before communication ceases entirely.
AscendEX Platform History
AscendEX launched in 2018 under the leadership of co-founders George Jing Cao and Ariel Ling. The exchange originally operated under the BitMax name before undergoing a brand transformation.
The platform experienced a significant security incident in December 2021, losing roughly $78 million in a breach subsequently attributed to the notorious Lazarus Group.
More recently, in May 2026, AscendEX halted trading for two stablecoins following what it characterized as a security incident involving unauthorized token creation.
While the exchange’s help documentation does reference occasional deposit and withdrawal interruptions, previous service announcements have attributed disruptions to routine wallet maintenance and system upgrades. None of these historical notices address the current volume of user complaints.
Caution Advised for Affected Customers
Individuals experiencing frozen withdrawals are increasingly becoming targets for fraudsters promoting bogus fund recovery services in exchange for advance payments. These “recovery” operations represent a common secondary scam that exploits victims of exchange difficulties and should be completely avoided.
ZachXBT has identified comparable situations at other trading platforms throughout this year, including JuCoin, as industry-wide examination of centralized exchange financial reserves has intensified.
At press time, AscendEX has not released any official statement addressing the liquidity allegations. The platform could alleviate user concerns by publishing independently verifiable proof of reserves documentation and establishing a concrete timeline for resuming normal withdrawal processing.
