Crypto Exchange AscendEX Shuts Down After Hot Wallet Warning

TLDR

• AscendEX ceased operations on July 1, 2026.
• Automated withdrawals are suspended on AscendEX.
• All AscendEX withdrawals now require manual review.
• ZachXBT warned of delayed withdrawals and low hot wallet reserves.
• AscendEX cited MiCA rules and a failed liquidity deal.

AscendEX has ceased operations after weeks of withdrawal complaints and a public warning from on-chain investigator ZachXBT about depleted visible hot wallets.

The centralized crypto exchange, formerly known as BitMax, said it stopped operations on July 1, 2026. Account access is now limited to offboarding, while automated withdrawals have been suspended and all withdrawal requests require manual review.

AscendEX cited the full enforcement of the European Union’s MiCA framework and financial pressure linked to a failed strategic transaction. The exchange also warned that some users may not recover their full balances.

AscendEX Cites MiCA and Liquidity Pressure

AscendEX said it did not hold the authorization required under MiCA to continue operating in the European Union after the framework entered full enforcement. The exchange said this regulatory issue contributed to its decision to wind down operations.

The company also said a planned strategic transaction failed to deliver expected liquidity. AscendEX stated,

The exchange added that weak market conditions increased financial and operational pressure. It said it is reviewing its financial position to determine what options remain available for account holders.

For now, users can only access the platform for exit-related activities. AscendEX said withdrawals may be delayed, may require extra information, or may not be processed in full.

ZachXBT Warned Users Before Shutdown

The shutdown came less than a week after ZachXBT warned that AscendEX users were reporting delayed or unprocessed withdrawals. He also said publicly identified hot wallets appeared to hold little or no major assets such as ETH, USDT, USDC, and SOL.

ZachXBT noted that exchange reserves may also sit in cold wallets, custodial accounts, or addresses not publicly labeled. However, his warning gave users an early signal that the platform’s withdrawal problems were becoming more serious.

He later urged affected users to contact law enforcement agencies and financial regulators in their jurisdictions. He also claimed the exchange had continued accepting deposits while many withdrawal requests remained pending.

AscendEX said all withdrawal requests will follow the same documented manual review process. The exchange said no group of users will receive preferential treatment during the review.

Former BitMax Had Backers and Prior Hack

AscendEX launched in 2018 as BitMax and rebranded in 2021. The exchange was once listed among the larger centralized crypto trading platforms by volume.

The company was founded by George Cao and Ariel Ling. Public information shows Cao holds a PhD in computer science from the University of Chicago.

AscendEX raised $50 million in a Series B funding round in 2021 led by Polychain Capital and Hack VC. The funding was meant to support product growth and expand the platform’s services.

The exchange also suffered a major security breach in December 2021, when about $78 million was drained from hot wallets. The attack was later linked to the Lazarus Group, a North Korea-linked hacking operation.

The closure now leaves users waiting for manual withdrawal reviews with no guaranteed timeline. AscendEX has told customers with stuck funds to document their cases and report unresolved issues to relevant regulators.

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