Key Takeaways
- Blockchain sleuth ZachXBT has raised concerns about AscendEX following numerous user complaints of withdrawal delays lasting days to weeks
- Analysis of publicly identified hot wallets reveals insufficient holdings of major cryptocurrencies including ETH, USDT, USDC, and SOL
- The exchange has remained silent on the allegations and has not addressed the liquidity questions publicly
- AscendEX suffered a significant security breach in December 2021, losing approximately $78 million
- Scammers are exploiting affected users by offering fraudulent fund recovery services
Prominent blockchain investigator ZachXBT has raised alarms about cryptocurrency exchange AscendEX, suggesting the platform could be experiencing serious liquidity challenges following numerous complaints from users unable to access their funds for extended periods.
According to ZachXBT’s analysis using blockchain analytics tools Arkham and TRM, the exchange’s publicly identified hot wallets show a concerning shortage of mainstream digital assets. His examination revealed notably low or absent reserves of ETH, USDT, USDC, and SOL — cryptocurrencies one would typically expect a healthy exchange to maintain in readily available 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 through his Investigations Telegram channel.
His assessment included examining wallet addresses across EVM-compatible chains, Tron, and Solana networks.
Understanding the Hot Wallet Analysis
Context matters when interpreting hot wallet data. These wallets function as operational accounts handling routine transactions and customer withdrawals. In standard exchange operations, the majority of customer assets remain secured in cold storage wallets, which typically aren’t publicly tagged or easily traceable through blockchain explorers.
Low hot wallet balances signal potential trouble but don’t definitively prove insolvency. ZachXBT carefully characterized the situation as pointing toward “likely” liquidity problems rather than making an absolute declaration.
However, the volume of user grievances strengthens these concerns significantly. Numerous customers report withdrawal requests languishing in an “initiating” status for weeks without generating transaction hashes. Additional users describe having withdrawal attempts rejected with no explanation provided.
Multiple customers have also noted that their support inquiries received only cursory acknowledgments before going unanswered.
AscendEX Platform History
AscendEX launched in 2018 under the leadership of founders George Jing Cao and Ariel Ling. The exchange originally operated under the name BitMax before undergoing a corporate rebrand.
The platform experienced a major security compromise in December 2021 when hackers stole roughly $78 million in cryptocurrency. Investigators later attributed this breach to the notorious Lazarus Group.
In May 2026, AscendEX took separate action to halt trading of two stablecoins following what it characterized as a hacking event involving irregular token minting activities.
While the exchange’s support documentation acknowledges that deposit and withdrawal interruptions can occur, and previous service notices have cited wallet maintenance and upgrades as reasons for delays, no official statement has addressed the current wave of user complaints.
Critical Advisory for Platform Users
Victims experiencing frozen withdrawals are now facing secondary threats from fraudsters posing as recovery specialists who demand upfront payments to restore access to funds. These fake recovery operations represent a common predatory scam that emerges whenever exchanges face distress, and users should categorically reject such offers.
ZachXBT has identified comparable problems at other trading platforms throughout this year, including JuCoin, reflecting broader industry concerns about centralized exchange transparency and reserve adequacy.
As of publication, AscendEX management has not released any official statement responding to the liquidity allegations. The platform could alleviate user concerns by providing independently verifiable proof of reserves alongside a concrete schedule for resuming normal withdrawal operations.
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