Key points
- Blockchain investigator ZachXBT has raised concerns about AscendEX after numerous reports of long withdrawal delays
- Publicly identified hot wallets show minimum holdings of popular cryptocurrencies including ETH, USDT, USDC and SOL
- The platform has remained silent on these allegations and has not addressed liquidity issues publicly
- AscendEX suffered a major security breach in December 2021 that resulted in approximately $78 million in losses
- Fraudsters exploit affected users by offering fraudulent refund services
Prominent blockchain investigator ZachXBT has issued a warning on centralized cryptocurrency exchange AscendEX, suggesting that the platform may face liquidity challenges following numerous user complaints about withdrawal requests remaining stuck for long periods without processing.
According to ZachXBT’s analysis, he examined AscendEX’s publicly known hot wallet addresses using Arkham and TRM blockchain analysis tools. His investigation revealed that these wallets appear to contain insufficient amounts of key digital assets such as ETH, USDT, USDC, and SOL – cryptocurrencies that are typically readily available on operational exchanges.
“I have noticed multiple reports that central exchange AscendEX is delaying user withdrawals for days or weeks or not processing withdrawals,” ZachXBT said on his Telegram investigative channel.
As part of his analysis, he provided cross-chain wallet addresses compatible with EVM, Tron, and Solana Networks for community verification.
Understand the evidence on the chain
It is important to definitively contextualize what hot wallet analyzes can show. Hot wallets act as operational accounts for processing daily transactions. The majority of reputable exchanges store the vast majority of users’ funds in cold storage solutions, which are typically not publicly classified or easily traceable through blockchain explorers.
Low hot wallet balances represent a potential warning sign, but do not conclusively prove insolvency. ZackXBT He described the situation as indicating “potential” liquidity problems, carefully avoiding an absolute announcement.
However, the volume of user grievances reinforces these concerns. Many traders reported that their withdrawal attempts remained stuck in the “starting” state for weeks, with no blockchain transaction hashes ever generated. Additional users describe withdrawal requests that were canceled without providing any explanation.
Many affected users also noted that customer support tickets only receive brief initial responses before communication stops completely.
History of AscendEX and previous incidents
AscendEX was launched in 2018 under the leadership of founders George Jing Cao and Ariel Ling. The exchange originally operated under the BitMax brand name before undergoing a rebranding.
The platform experienced a major security breach in December 2021, losing nearly $78 million in the incident. The Lazarus Group was later identified as responsible for the breach.
In May 2026, AscendEX took separate action to halt trading of two stablecoins following what the exchange described as a security incident involving irregular token minting activity.
While the exchange’s support documentation notes occasional delays in deposits and withdrawals, and historical maintenance notices have indicated upgrades to the wallet’s infrastructure, none of these communications specifically address the current volume of user complaints.
Warning warning for affected users
Traders with frozen withdrawal requests are now targets of fraudulent actors claiming to offer refund assistance in exchange for advance payments. These so-called “clawbacks” represent a well-established secondary scam that preys on victims of exchange difficulties and should be avoided completely.
ZachXBT has previously identified similar situations at other trading platforms throughout this year, including JuCoin, as industry-wide scrutiny of central exchange reserve holdings has intensified.
At the time of publication, AscendEX has not issued any official statement addressing the liquidity allegations. The exchange can alleviate users’ concerns by issuing independently verifiable evidence of reserves documentation and setting a concrete timeline for the normalization of withdrawals.
