The cryptocurrency exchange AscendEX has officially announced the cessation of its operations starting July 1, 2026. This decision marks the final point in a series of problems that have been accumulating for years. Now, user access to the platform is limited exclusively to account closure operations, and all withdrawal requests undergo manual verification—without any guarantees of execution.
The situation is exacerbated by the exchange's direct admission: no client can expect priority service, and the timelines and amounts of payouts remain uncertain. This statement came as a shock to many, but it was far from unexpected for those who had been following signals from on-chain analysts.
Why is AscendEX shutting down?
In an official letter dated July 6, addressed to retail clients, the platform's management cited several key reasons. The main one was the full enforcement of the European MiCA regulation, for which the exchange lacks the necessary authorization. However, behind this formal explanation lie much deeper issues: regulatory pressure, financial difficulties, and operational failures.
Since the suspension of operations, users have lost the ability to open accounts, deposit funds, trade, stake assets, or participate in promotions. The only remaining options are submitting withdrawal requests, updating KYC data, and contacting support. Meanwhile, all transactions now undergo manual screening, including account checks, KYC/AML procedures, sanctions screening, and balance reconciliation.
From rise to collapse
The history of AscendEX (formerly BitMax) is a classic example of a rise and fall. Founded in 2018 by George Cao and Ariel Ling, the exchange quickly entered the top ten largest platforms by trading volume. Cao, who holds a PhD in computer science from the University of Chicago, was considered a respected figure in the industry.
In 2021, the platform raised $50 million in a Series B round led by Polychain Capital and Hack VC. However, that same year, the exchange suffered a $78 million hack linked to the North Korean Lazarus group. This incident was the first warning sign, which, as it turned out, foreshadowed more serious problems.
ZachXBT's warnings: what was overlooked
Long before the official announcement of the shutdown, on-chain detective ZachXBT repeatedly warned the community about issues at AscendEX. He documented numerous complaints about delays and refusals in withdrawals, and pointed out the absence of major assets such as ETH, USDT, and SOL in the exchange's public hot wallets.
ZachXBT's reaction to the news of the shutdown was harsh. He emphasized that the exchange effectively admitted that withdrawals might not happen. According to his data, the platform's hot wallets still lack sufficient liquid assets to cover the user claims he has verified. The analyst urged affected individuals to contact law enforcement and regulators in their respective countries to hold the exchange's co-founder, George Cao, accountable.
My professional opinion: The collapse of AscendEX is not just the story of one failed exchange. It is a systemic signal for the entire market. The incident underscores the critical importance of regularly monitoring platform reserves and using non-custodial solutions. When public hot wallets run empty and management cites regulatory reasons, it almost always masks deeper financial problems. Users should remember: if an exchange starts delaying withdrawals and introducing manual checks, it is the last warning before a collapse.