Cryptocurrency exchange AscendEX is facing potential liquidity issues after multiple users reported stuck withdrawals. On June 26, blockchain investigator ZachXBT flagged that the exchange's hot wallets lack large-cap tokens like ETH and USDT. Data shows its wallets hold ~$20.2M, dominated by small-cap assets. The exchange, which suffered a $78M hack in 2021, has not publicly responded to the allegations.
AscendEX withdrawal delays
- ▪As of June 26, 2026, AscendEX had not issued a public response to the allegations
- ▪Multiple AscendEX users have reported that their fund withdrawals are stuck or delayed for extended periods
- ▪In some cases, funds were removed from user balances but no blockchain transaction hash was generated
- ▪One user reported a 4,196 USDT withdrawal has been stuck in an "initiating" state since June 10, 2026
ZachXBT liquidity investigation
- ▪Data from Arkham showed AscendEX-tagged wallets held about $20.2 million in crypto, primarily in smaller-cap assets
- ▪On June 26, 2026, blockchain investigator ZachXBT flagged that AscendEX may be facing liquidity issues
- ▪ZachXBT advised the public not to deposit funds to the AscendEX exchange
- ▪ZachXBT's analysis showed AscendEX's known hot wallets lack large-cap tokens such as ETH, USDT, and SOL
Hot wallet versus cold storage
- ▪Low balances in an exchange's publicly known hot wallets do not definitively prove insolvency
- ▪Most cryptocurrency exchanges store the bulk of customer funds in offline "cold storage" wallets, which are often untraceable
- ▪Concerns about crypto exchange liquidity are highly sensitive following the 2022 collapse of FTX, which exposed a multi-billion dollar shortfall
AscendEX security history
- ▪The exchange suffered a $78 million hot-wallet hack in December 2021 that was attributed to the Lazarus Group
- ▪AscendEX, formerly known as BitMax, was launched in 2018
- ▪In May 2026, AscendEX halted trading for two stablecoins after reporting "irregular token minting activity."
Recovery scam warnings
- ▪Users affected by the AscendEX withdrawal delays are being targeted by fraudulent "recovery" services demanding upfront payments
- ▪This type of secondary scam commonly follows disruptions at cryptocurrency exchanges
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