In the latest crypto news, blockchain investigator ZachXBT has raised concerns that centralized cryptocurrency exchange AscendEX may be experiencing liquidity issues after receiving multiple reports of delayed user withdrawals. According to his findings, several customers have allegedly waited days or even weeks for withdrawals to be processed. After reviewing the exchange’s publicly known hot wallets, ZachXBT concluded it could be dealing with tightening liquidity.
ZachXBT Questions AscendEX’s Liquidity
ZachXBT shared the warning through his Telegram channel. In the community alert, he said he had observed a growing number of reports from users unable to withdraw funds from AscendEX. Some users claimed withdrawals remained pending for extended periods, while others alleged their requests had not been processed at all.
Investigating the claims, ZachXBT reviewed several wallet addresses linked to AscendEX using blockchain analytics platforms Arkham and TRM Labs. Based on his analysis, the exchange’s known hot wallets appeared to lack significant balances of major assets including ETH, USDT, and SOL. He said the findings suggest that AscendEX is likely facing liquidity issues, although he stopped short of declaring the exchange insolvent.
Founded in 2018 by George (Jing) Cao and Ariel Ling, AscendEX—formerly known as BitMax—serves both retail and institutional traders. The platform also suffered a major security breach in December 2021. Hackers linked to North Korea’s Lazarus Group reportedly stole approximately $78 million in digital assets from the exchange. Although the exchange later resumed operations, the incident remains the largest attacks in its history.
Withdrawal Complaints Grow as Users Await Response
ZachXBT’s warning comes amid increasing complaints from users across online communities. Several recent Reddit posts describe withdrawals remaining stuck in an “Initiating” status for more than a week without a transaction ID being generated. Some users also alleged that customer support provided only generic responses or stopped replying altogether after repeated inquiries.
At the time of publication, AscendEX had not issued a public statement directly addressing ZachXBT’s allegations or the reported liquidity concerns. The exchange’s support documentation states that withdrawals typically generate a transaction ID shortly after processing begins. The only exception is in the event of manual security reviews for large withdrawals or blockchain congestion, which can occasionally cause delays.
While these developments do not automatically indicate AscendEX is insolvent, the relatively low reserve balances add increased scrutiny. Crypto investors have become sensitive to such warning signs following several high-profile exchange failures over recent years.
For now, the situation remains unresolved. Traders will be watching closely for evidence that withdrawals are returning to normal, updated proof-of-reserves information, or an official response from AscendEX addressing the growing concerns.
The CoinRemark Team
Temitope Olajide