AscendEX halted its cryptocurrency exchange operations on July 1, leaving customers uncertain about the status of their funds. In a notice published on July 6, the platform said the shutdown was driven by several pressures at once: the full rollout of the European Union’s Markets in Crypto-Assets Regulation, ongoing financial and operational strain, and the collapse of a transaction that had been expected to add liquidity.
The exchange said it does not hold authorization under the MiCA framework, which took full effect on July 1. At the same time, it pointed to persistent business difficulties and said a strategic deal meant to provide additional funding never closed. That failed transaction removed a key source of liquidity at a difficult point for the company, and AscendEX said it is now reviewing its financial position before deciding what options remain for customer balances.
Automated withdrawals are suspended and accounts are limited
AscendEX said account access is now restricted to offboarding-related activity, while automated withdrawals remain suspended. Customers can still file withdrawal requests, but each request must go through manual review. The company did not commit to any payout schedule. It also said it cannot guarantee the final amount that users may receive.
The wording of the notice was direct. AscendEX said some account holders may not recover their full cryptocurrency balances. It also stated that no customer or customer group will receive priority during the review process. For users still waiting on funds, that leaves two open questions at once: how long reviews will take, and whether balances will be paid in full.
ZachXBT flagged delays and thin hot wallet balances
Liquidity concerns had already been building before the official shutdown notice. According to on-chain investigator ZachXBT, multiple users had reported withdrawal delays lasting several days and, in some cases, several weeks. He shared those observations on Telegram while monitoring wallet activity connected to the platform.
ZachXBT also said an examination of AscendEX hot wallets showed very limited reserves of major cryptocurrencies, including Ethereum, USDT, USDC, and Solana. Those findings added to concerns about the exchange’s available liquidity before it formally stopped operating. He urged affected users to file complaints with financial regulators and law enforcement so authorities can review the case and decide whether additional action is needed.
The platform also carries a history of security trouble
AscendEX launched in 2018 under the BitMax brand. The exchange previously suffered a major security incident in 2021, when a cyberattack led to losses of about $78 million. The company recovered from that event, but later faced growing operational and financial pressure.
For now, AscendEX has not provided a timetable for resolving customer balances. Manual withdrawal reviews are still in progress, and the company said more updates will come only after its financial assessment is complete.