Key Highlights
- AscendEX announced it will cease operations, citing market conditions and MiCA regulations.
- ZachXBT alleges user withdrawals remain delayed while deposits continue to be accepted.
- The investigator alleges AscendEX’s public hot wallets still lack sufficient liquid assets to cover verified customer claims.
AscendEX, the centralized exchange, announced on July 6 that it will shut down operations, weeks after blockchain investigator ZachXBT alleged the exchange was delaying customer withdrawals and appeared to lack sufficient on-chain liquidity to process them.
In an official announcement, the exchange said it was winding down due to challenging market conditions and the European Union’s Markets in Crypto-Assets (MiCA) regulation. However, the closure announcement has done little to ease concerns, with ZachXBT alleging that affected customers are still struggling to withdraw their funds.
In an update shared on Wednesday, ZachXBT said AscendEX remained largely unresponsive to affected users and alleged that the exchange’s publicly known wallets still do not hold enough liquid assets to satisfy multiple verified customer withdrawal claims.
Shutdown follows weeks of withdrawal concerns
The closure comes roughly two weeks after ZachXBT issued a public warning, alleging AscendEX was delaying withdrawals for days or weeks. While the platform initially kept deposits open during those initial delays, all deposit and trading services have now been deactivated as part of the operational freeze.
At the time, the blockchain investigator said his review of the exchange’s known hot wallets suggested they lacked sufficient balances of major assets such as ETH, USDT, and SOL, raising concerns about the platform’s ability to process customer withdrawals. ZachXBT also encouraged users experiencing withdrawal issues to document their cases and contact regulators.
Meanwhile, The Crypto Times has reached out to AscendEX for comment regarding ZachXBT’s allegations, the reported withdrawal delays, and the status of customer assets, but hasn’t received any response yet.
AscendEX says withdrawals are subject to review
In its official notice to customers, AscendEX said it would cease operations and stop offering exchange services. The company stated that withdrawal requests would be reviewed individually and, where possible, processed, subject to legal, technical, and operational requirements.
It also cautioned users that withdrawals “may require additional information” and that “we are not in a position to give assurances about timing or amounts today.” The exchange did not directly address ZachXBT’s liquidity claims.
Pressure mounts on the exchange
The shutdown marks the latest chapter in a difficult period for AscendEX, which has faced increasing scrutiny over customer withdrawals as crypto exchanges navigate tighter regulatory requirements, particularly under Europe’s MiCA framework.
With operations now winding down, attention is likely to shift to whether customers can ultimately recover their funds and whether regulators launch further investigations into the exchange’s handling of withdrawals.
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