ZachXBT warns AscendEX may face liquidity issues as withdrawals stall

On-chain investigator ZachXBT has warned that centralized exchange AscendEX may be delaying user withdrawals due to possible liquidity stress. 

The alert followed several user reports claiming that withdrawals had been pending for days or weeks.

AscendEX, formerly known as BitMax, has not issued a public response to the latest claims at the time of writing. ZachXBT said he reviewed known exchange hot wallets on Arkham and TRM. He said the wallets appeared to lack large assets such as ETH, USDT, USDC and SOL.

Wallet review raises reserve questions

ZachXBT said the wallet review points to possible liquidity issues, but the claim has not been confirmed by AscendEX. He said the exchange may be delaying or failing to process some withdrawal requests. He also shared EVM, Tron and Solana hot wallet addresses linked to the review.

He added that its reserves “appear to lack large cap tokens” such as ETH, USDT and SOL. The wording leaves room for further verification because exchange reserves can include cold wallets, third-party custody or wallets not publicly labeled.

AscendEX history adds context

AscendEX was founded in 2018 by George Jing Cao and Ariel Ling. The exchange became known as BitMax before its later rebrand. In December 2021, the platform was reportedly hacked for about $78m in assets, with the Lazarus Group later linked to the attack.

The new alert comes at a time when users remain sensitive to withdrawal delays across smaller and mid-sized exchanges. As crypto.news reported, ZachXBT also flagged JuCoin over withdrawal delays and reserve concerns earlier this month. In that case, users questioned whether reported reserves were backed by liquid third-party assets.

Users look for proof of liquidity

AscendEX’s own help center says withdrawals usually move through platform verification, blockchain confirmation and receipt by the target wallet. It also says users should receive a TXID once AscendEX completes the transfer to the blockchain. The help center tells users to contact support if no TXID is generated within two hours after a withdrawal request.

That guidance matters because several complaints around exchange delays often center on the same point: funds leave the available balance, but no blockchain transaction appears. Without a TXID, users cannot verify whether the asset has moved on-chain. That makes communication from the exchange more important during stress.

Previously, crypto.news explored how reserve reports can fail to calm users when withdrawal pressure builds. The same issue now applies to AscendEX. Users need clear timelines, wallet transparency and proof that major assets remain available for withdrawal.

The situation remains developing. ZachXBT’s claims raise concern, but they do not prove insolvency. AscendEX can reduce uncertainty by publishing a clear update, explaining any delays and showing verifiable asset balances across hot and cold wallets. Until then, the alert is likely to keep pressure on the exchange and its reserve practices.