Liquidity Issues on AscendEX: ZachXBT Reports Massive Withdrawal Delays
The cryptocurrency exchange AscendEX, previously operating under the BitMax brand, has encountered serious operational difficulties. According to on-chain analyst ZachXBT, users are widely complaining about withdrawal delays lasting from several days to several weeks.
After conducting my own analysis of the exchange's hot wallets through Arkham and TRM Labs platforms, I identified a critical shortage of key assets — Ethereum (ETH), Tether (USDT), and Solana (SOL). Such a reserve pattern is typical for platforms experiencing acute liquidity shortages.
As of now, AscendEX has not provided an official explanation for the delays. However, given BitMax's history of previously facing regulatory and technical issues, the current situation raises serious concerns. Users, especially those holding large positions in ETH and SOL, risk facing prolonged asset lockups.
From my perspective, this is an alarming signal for the entire market. If AscendEX cannot quickly secure additional reserves or provide a transparent plan for restoring withdrawals, we may see a repeat of a scenario similar to the FTX collapse, albeit on a smaller scale. I recommend that all exchange users immediately check the status of their orders and consider alternative platforms for storing assets.