The cryptocurrency exchange AscendEX has come under pressure after numerous users reported significant delays and failures in their withdrawal transactions. Users described waiting extended periods without their withdrawal requests being processed or completed on the platform.
On-chain data prompts fresh scrutiny
Blockchain analyst ZachXBT shared an assessment on June 26, stating he investigated known wallet addresses linked to AscendEX using Arkham and TRM data. His findings indicated that the exchange’s hot wallets currently hold only limited liquid assets, raising doubts over the platform’s ability to fulfill withdrawal requests.
Glossary: A hot wallet is a cryptocurrency wallet connected to the internet and used for daily transfers. In contrast, a cold wallet is kept offline, and exchanges typically use it to store the majority of customer assets securely.
ZachXBT called attention to two key questions from the community: Why are users experiencing delayed or incomplete withdrawals, and why are AscendEX’s hot wallets showing minimal liquid assets? He also advised against depositing new funds on the platform during this uncertain period.
Complaints from users actually predate ZachXBT’s statements and have been accumulating for several days. On June 22, a user identifying as a JurisProtocol investor claimed on X that USDT proceeds from a token sale had been held for over three and a half days, no transaction ID was generated, and attempts to contact support had gone unanswered.
Other users reported that their withdrawal requests remained stuck in a “processing” or pending state for long stretches. In these cases, funds were deducted from the available balance, but no transaction hashes could be verified on the blockchain. In a separate online forum post, a participant claimed a PAXG withdrawal had been delayed for nearly 10 days.
Limited hot wallet balances do not guarantee insolvency
It is important to note that low balances in publicly tagged hot wallets do not automatically prove that an exchange is insolvent. Many crypto platforms, as a standard industry practice, hold most customer funds in cold wallets, which are more difficult for outsiders to monitor.
Even ZachXBT stopped short of asserting that AscendEX is bankrupt, emphasizing instead that available data point more to a possible liquidity issue. AscendEX’s own help center specifies that users should receive a transaction ID within two hours of submitting a withdrawal request and instructs them to contact support if this does not occur.
As of June 26, AscendEX had yet to issue any public statement addressing the mounting withdrawal complaints.
AscendEX’s checkered security record
AscendEX, which launched in 2018 under the BitMax brand and was founded by George Jing Cao and Ariel Ling, is known for listing more than 250 digital assets and offering spot, margin, and derivatives trading.
In December 2021, the platform’s hot wallets across Ethereum, BNB Chain, and Polygon suffered a combined $78 million breach, which was later linked to the Lazarus Group. More recently, in May 2026, AscendEX halted withdrawals for two stablecoins following an incident it described as irregular token issuance.
Amid withdrawal difficulties, users now face an additional risk from fraudulent “recovery services” claiming to retrieve stuck funds in exchange for upfront fees. Consequently, impacted users have been urged to remain vigilant against third-party scams.
