ZachXBT Warns AscendEX May Be Facing Liquidity Issues Amid Withdrawal Delays

• ZachXBT flagged AscendEX after users reported withdrawals delayed for days or weeks.
• Hot wallet balances appeared low, fueling concerns about possible exchange liquidity.
• AscendEX has not publicly addressed the withdrawal delays or liquidity concerns.

On-chain investigator ZachXBT has raised concerns that cryptocurrency exchange AscendEX may be experiencing liquidity challenges after multiple users reported prolonged withdrawal delays. Although the exchange has not confirmed any financial difficulties, the allegations have renewed attention on reserve transparency and operational stability across centralized crypto platforms.

Withdrawal Complaints Spark Liquidity Concerns

ZachXBT stated that he received numerous reports from AscendEX users claiming withdrawal requests remained pending for several days or even weeks. According to the investigator, some requests were not processed at all, while others remained stuck without generating blockchain transaction records.

Following these reports, ZachXBT reviewed known AscendEX hot wallet addresses using blockchain analytics platforms Arkham and TRM. He said the wallets appeared to hold limited balances of major cryptocurrencies, including ETH, USDT, USDC, and SOL. 

ZachXBT: AscendEX May Be Delaying User Withdrawals Due to Liquidity Issues

ZachXBT issued a community alert saying he has observed multiple reports that centralized exchange AscendEX, formerly Bitmax, is delaying user withdrawals for days or weeks, or not processing withdrawals.… pic.twitter.com/bluRdEdDys

— Wu Blockchain (@WuBlockchain) June 26, 2026

Consequently, he suggested the exchange could be experiencing liquidity constraints affecting withdrawal processing.

However, hot wallet balances alone cannot conclusively determine an exchange’s financial position. Most centralized exchanges maintain significant reserves in cold wallets that remain offline and are often not publicly identifiable. 

Therefore, the available on-chain data raises concerns but does not confirm insolvency or insufficient overall reserves.

AscendEX has not publicly responded to the allegations or provided an explanation for the reported withdrawal delays at the time of writing.

Exchange Background Adds Industry Context

AscendEX launched in 2018 under the name BitMax before adopting its current brand identity. The exchange was founded by George Jing Cao and Ariel Ling and has operated across multiple cryptocurrency markets since its establishment.

The platform previously experienced a major security incident in December 2021 after hackers reportedly stole approximately $78 million in digital assets. Security researchers later linked the attack to the Lazarus Group, which has been associated with several high-profile cryptocurrency thefts.

More recently, AscendEX temporarily suspended trading for two stablecoins following an abnormal token minting incident. While unrelated to the current withdrawal complaints, the previous disruptions have drawn additional attention to the platform’s operational resilience.

Despite these past incidents, the exchange has continued serving users and has periodically attributed temporary withdrawal delays to wallet maintenance and system upgrades.

Calls Grow for Greater Reserve Transparency

The latest claims have intensified industry discussions surrounding proof of reserves and exchange transparency. Users increasingly expect centralized platforms to demonstrate sufficient liquidity, particularly during periods of elevated withdrawal activity.

ZachXBT emphasized that his observations indicate possible liquidity issues rather than definitive proof of insolvency. Nevertheless, continued reports of delayed withdrawals have prompted greater scrutiny from market participants seeking reassurance about customer asset availability.

Meanwhile, cybersecurity experts have warned affected users to avoid fraudulent recovery services promising access to frozen funds for upfront payments. Such scams frequently emerge whenever exchanges experience operational disruptions or withdrawal backlogs.

Industry observers note that AscendEX could reduce uncertainty by publishing verifiable proof of reserves alongside a detailed update explaining the reported delays. 

Until the exchange issues an official statement, questions surrounding its liquidity position are likely to remain under close market observation.