AscendEX Under Suspicion: Withdrawal Delays and Liquidity Warning Signs
The cryptocurrency exchange AscendEX, formerly known as Bitmax, has come under scrutiny following a series of user complaints about withdrawal delays. The situation raises serious concerns regarding the platform's financial health.
Renowned analyst ZachXBT, after conducting his own investigation, identified a troubling trend: users report payment delays lasting from several days to weeks, and in some cases, withdrawal requests are not processed at all. Using Arkham and TRM services, ZachXBT analyzed the exchange's hot wallets. His findings are concerning: AscendEX's reserves show a shortage of major liquid assets such as ETH, USDT, and SOL.
What do the wallet data say?
The deficit of liquid tokens in hot wallets is a classic symptom that the exchange is struggling to ensure smooth withdrawals. According to ZachXBT, the combination of payment delays and scarce reserves is an extremely alarming signal. However, it is worth emphasizing that this is currently only an analyst's observation, not an officially confirmed fact. The exchange itself had not provided detailed comments at the time of publication.
History and context of AscendEX
Founded in 2018 by George (Jin) Cao and Ariel Ling, the platform originally operated under the Bitmax brand. Its history is already marred by a serious incident: in December 2021, the exchange was hacked by the infamous North Korean Lazarus Group. Client losses at that time were estimated at $78 million. This fact adds weight to current concerns, raising questions about the platform's long-term stability and security.
For now, claims about reserve shortages remain merely a signal for caution. Final conclusions can only be drawn after AscendEX's official position and an independent audit of its reserves. Until then, ZachXBT's warnings should be regarded as a serious reason for scrutiny, but not as an established fact.
My professional analysis: This situation is yet another reminder of the systemic risks of centralized exchanges. The AscendEX incident, compounded by the history of the Lazarus Group hack, underscores the critical importance of reserve transparency. Users should view such signals as a trigger for diversifying assets and transferring funds to cold wallets. The market does not forgive uncertainty, and withdrawal delays are the first step toward a loss of trust, which can be fatal for any platform.