AscendEX has come under heavier scrutiny after blockchain investigator ZachXBT said on June 26 that known wallets tied to the exchange appear to hold only limited liquid assets. Using Arkham and TRM data, he reviewed publicly linked addresses and said the low balances in hot wallets raise questions about the platform’s ability to process user withdrawals in a timely manner.
On-chain review shifts attention to wallet liquidity
ZachXBT framed the issue around two questions being raised by the community: why users are seeing delayed or incomplete withdrawals, and why AscendEX’s hot wallets show very little readily available liquidity. He also warned users against making new deposits while the situation remains unclear. Hot wallets are internet-connected and commonly used for routine transfers, while most customer assets are often kept in cold wallets that are harder for outsiders to track.
The complaints did not start with his post. On June 22, an X user identifying as a JurisProtocol investor said USDT proceeds from a token sale had been held for more than 3.5 days, no transaction ID had been generated, and support requests had not been answered.
Users report pending withdrawals without visible transaction hashes
Other users said their withdrawal requests stayed in a “processing” or pending state for extended periods. In those cases, funds were removed from available balances, but no on-chain transaction hash could be verified. In a separate forum post, one participant claimed a PAXG withdrawal had been delayed for nearly 10 days.
Low balances in publicly tagged hot wallets, by themselves, do not prove insolvency. Many exchanges keep most customer assets in cold storage as a standard security practice. ZachXBT did not say AscendEX was bankrupt; his comments pointed instead to the possibility of a liquidity problem.
Help center policy and security history return to view
AscendEX’s own help center says users should receive a transaction ID within two hours after submitting a withdrawal request and should contact support if that does not happen. As of June 26, the exchange had not published a public statement addressing the growing number of withdrawal complaints.
The platform launched in 2018 under the BitMax brand and was founded by George Jing Cao and Ariel Ling. It lists more than 250 digital assets and offers spot, margin, and derivatives trading. Its record on security is also being revisited. In December 2021, AscendEX hot wallets on Ethereum, BNB Chain, and Polygon suffered a combined $78 million breach later linked to the Lazarus Group. In May 2026, the exchange also halted withdrawals for two stablecoins after what it described as irregular token issuance.
Users dealing with stuck withdrawals now face a separate threat: fake recovery services promising to retrieve funds in exchange for upfront fees. Warnings circulating around the case have urged affected users to watch for third-party scams.