The cryptocurrency exchange AscendEX has officially announced it will cease operations as of July 1, 2026. Account access is retained only for limited position-closing operations, and all withdrawal requests are now subject to manual review and may not be fulfilled. This marks the final chapter in the history of a platform that was once among the top ten largest in the world.
What happened?
In a letter sent to retail clients on July 6, AscendEX explained its decision citing several factors. The key reason was the full entry into force of the European MiCA regulation, for which the exchange lacks authorization. Broader regulatory, financial, and operational factors also played a role.
Since the halt, clients have lost access to most functions: opening accounts, depositing funds, trading, asset exchange, staking, and participating in promotions — all of these are now unavailable. The personal account is retained only for withdrawing funds, updating KYC data, submitting complaints, contacting support, and downloading transaction history.
Special emphasis is placed on the new withdrawal procedure. Since July 6, all requests undergo manual review, and automatic withdrawals have been suspended. The company described this as "the most responsible step for orderly processing of requests." Requests will only be considered if legal and technical requirements are met: account verification, KYC/AML procedures, sanctions screening, and balance reconciliation.
At the same time, the exchange explicitly acknowledged that it cannot guarantee timelines or amounts and emphasized that no client receives priority outside the described procedure.
The rise and fall of a market leader
Founded in 2018 under the name BitMax, the company of George Cao and Ariel Ling was once among the top ten largest crypto exchanges by trading volume. According to public data, Cao holds a PhD in computer science from the University of Chicago.
In 2021, the platform raised $50 million in a Series B round led by Polychain Capital and Hack VC. That same year, the exchange reportedly suffered a $78 million hack linked to the North Korean Lazarus group.
ZachXBT's reaction to the announcement was harsh. According to him, the exchange effectively admitted that withdrawals may not happen. The platform's public hot wallets still lack liquid assets to cover verified user claims for the stated amounts. The researcher urged victims to act through official channels and recommended filing reports with law enforcement and regulators in their respective countries to hold the platform's co-founder George Cao accountable.
My analysis: The AscendEX story is a classic example of how even successful and well-funded projects can collapse under the pressure of regulatory requirements and internal issues. The lack of liquidity in hot wallets is an alarming sign, indicating that the exchange likely faced financial difficulties for some time. For users, this is a lesson: never keep significant funds on centralized exchanges, especially amid tightening regulations.