An on-chain analyst reports liquidity issues on AscendEX: withdrawals are delayed by weeks.
In recent days, there have been increasing signs of serious disruptions in the operation of the cryptocurrency exchange AscendEX (formerly known as BitMax). Analysis of on-chain data and mass user complaints indicate that the platform is experiencing an acute shortage of liquidity.
Withdrawal delays and empty wallets
Monitoring of network transactions has revealed that users are complaining about the inability to withdraw funds for periods ranging from several days to several weeks. A check of the exchange's known hot wallets in tools such as Arkham and TRM Labs shows a critical deficit of key assets: Ethereum (ETH), Tether (USDT), and Solana (SOL).
Against this backdrop, on-chain detective ZachXBT has publicly stated that he has received multiple reports from affected clients. Apparently, the exchange, which underwent a rebranding and previously suffered an attack in 2021, is once again facing operational difficulties. The shortage of large volumes of stablecoins and liquid coins in hot wallets is a classic sign of solvency issues or a temporary failure in reserve management.
My conclusions
Such incidents are a warning signal for the market. If the exchange does not provide a transparent report on its reserves and speed up the processing of withdrawal requests, trust in it may be completely undermined. I recommend that users with assets on AscendEX exercise extreme caution and consider diversifying their funds across more reliable platforms with verified reserves.