Key Takeaways
- Blockchain detective ZachXBT has raised concerns about AscendEX following numerous reports of withdrawal delays lasting days to weeks
- Analysis of publicly identified hot wallets reveals apparent shortages of major cryptocurrencies including ETH, USDT, USDC, and SOL
- The exchange has remained silent and has not released any official statement regarding the alleged liquidity problems
- AscendEX suffered a security breach in December 2021 resulting in approximately $78 million in losses
- Scammers are now exploiting affected users by offering fraudulent fund recovery services
Prominent blockchain investigator ZachXBT has raised serious concerns about cryptocurrency exchange AscendEX, suggesting the platform could be experiencing liquidity problems following numerous user complaints about withdrawal requests that have remained unprocessed for extended periods.
According to ZachXBT’s analysis using blockchain analytics tools Arkham and TRM, the exchange’s publicly identifiable hot wallets show a notable absence of major cryptocurrency assets such as ETH, USDT, USDC, and SOL — digital assets typically held in substantial quantities by operational exchanges.
“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.
As part of his investigation, he provided wallet addresses across EVM-compatible chains, Tron, and Solana networks for community verification.
Understanding the Hot Wallet Analysis
It’s important to note the limitations of hot wallet analysis when assessing exchange solvency. Hot wallets serve as operational accounts for daily transaction processing. The majority of legitimate exchanges store most customer assets in cold storage wallets, which are typically not publicly labeled or easily traceable on blockchain networks.
While depleted hot wallet balances are cause for concern, they don’t definitively prove insolvency. ZachXBT himself characterized the situation as “likely” indicating liquidity problems, carefully avoiding absolute declarations.
However, the volume and consistency of user reports lend credibility to these concerns. Numerous customers report their withdrawal requests have remained stuck in an “initiating” status for weeks without generating transaction hashes. Additional users describe withdrawal attempts being canceled without any explanation provided.
Multiple affected customers also report that customer support tickets receive initial acknowledgment but are subsequently ignored.
AscendEX Platform History
AscendEX was established in 2018 by founders George Jing Cao and Ariel Ling. The exchange originally operated under the BitMax brand before undergoing a corporate rebrand.
The platform experienced a major security compromise in December 2021, losing roughly $78 million worth of cryptocurrency. The notorious Lazarus Group was subsequently connected to this breach.
More recently, in May 2026, AscendEX halted trading for two stablecoins following what it characterized as a hacking event involving unauthorized token creation.
While the exchange’s support documentation acknowledges occasional deposit and withdrawal disruptions, attributing past incidents to wallet maintenance and system upgrades, none of these published notices address the current widespread nature of user complaints.
Caution for Affected Platform Users
Individuals experiencing frozen withdrawals are now being approached by fraudsters claiming to offer fund recovery assistance in exchange for upfront payments. These so-called “recovery” operators represent a well-documented secondary scam that preys on exchange distress victims and should be completely avoided.
ZachXBT has identified similar problems at other cryptocurrency exchanges throughout this year, including JuCoin, as industry-wide scrutiny of centralized exchange reserve holdings has intensified.
As of publication, AscendEX has not released any public statement addressing the liquidity allegations. The exchange could help resolve uncertainty by publishing independently verifiable proof of reserves documentation and providing a concrete schedule for restoring normal withdrawal operations.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
