On June 26, AscendEX (formerly Bitmax) was reported to have experienced large-scale withdrawal anomalies. Some users reported that their withdrawal requests remained stuck in the 'Initiating' status for an extended period, with no corresponding on-chain hash found, sparking concerns about the platform's liquidity solvency.
The platform previously suffered a hack by the Lazarus Group in 2021, losing approximately $78 million. Since then, AscendEX has not published a Merkle tree proof of reserves nor undergone third-party audits, raising transparency concerns. The latest episode further erodes user trust.
This incident highlights the broader survival challenges faced by mid-small crypto exchanges amid tightening regulations and industry consolidation: balancing security event recovery, compliance costs, and user confidence. Exchanges lacking transparent reserve audits are increasingly being weeded out by the market.