Withdrawal Requests Delayed, Deposits Still Accepted
On-chain detective ZachXBT has revealed multiple reports indicating that centralized cryptocurrency exchange AscendEX (formerly Bitmax) has been delaying or completely ignoring user withdrawal requests for consecutive days or even weeks. Despite this, the platform continues to accept user deposits, creating an asymmetric situation that has raised serious concerns about its solvency.
On-Chain Data Shows Hot Wallet Depletion
In an initial warning on June 26, ZachXBT pointed out that by analyzing on-chain data from Arkham and TRM, multiple known hot wallets of AscendEX (covering EVM, Tron, and Solana networks) were severely lacking in large-cap tokens such as ETH, USDT, and SOL. Such critically low hot wallet balances typically signal a severe liquidity crisis, potentially indicating that the platform may be insolvent.
Management Silence and Historical Hack
In the nine days since the initial warning, AscendEX's official X account has remained inactive, and co-founder George (Jing) Cao has not responded to inquiries from users with trapped funds. ZachXBT strongly recommends that users unable to withdraw funds report the matter to law enforcement and regulatory authorities in their respective jurisdictions. AscendEX was founded in 2018 by George Cao and Ariel Ling. In December 2021, the exchange was attacked by the North Korean hacker group Lazarus Group, resulting in losses of approximately $78 million. Whether the current liquidity crisis is related to that event remains to be investigated.