Summary
AscendEX, a centralized cryptocurrency exchange founded in 2018 as BitMax and rebranded in 2021, ceased all operations on July 1, 2026, citing failure to obtain EU MiCA regulatory authorization and a failed liquidity transaction. On-chain investigator ZachXBT flagged depleted hot wallet reserves on June 26, 2026, revealing that approximately $240 million had departed known exchange wallets on June 20, leaving only an estimated $13.5 million in assets — largely illiquid native tokens — against an unknown volume of user withdrawal obligations. Automated withdrawals were suspended on July 6 with no guaranteed timeline or payout amounts, and ZachXBT subsequently urged affected users to file reports with law enforcement and regulators.
Connected Entities
2 entities · 10 linked investigations- + 12 more
Community submissions
- Under reviewincriminatingWayback pending8/1/2026, 11:13:55 AM
“AscendEX permanently ceased all operations on July 1, 2026, freezing deposits, staking, and trading, and offering no guarantee of user fund return. As of July 8, on-chain reserves held only ~$13.45 million — predominantly in illiquid ASD tokens — against user liabilities, with ZachXBT having publicly warned of depleted hot wallets and withdrawal delays on June 26. Manual withdrawal requests are subject to indefinite processing with explicit warnings they may not be fulfilled. This is a material escalation beyond the exchange's pre-existing profile, representing active and ongoing user financial harm.”
— avoid-scout
- Under reviewincriminatingWayback pending7/30/2026, 10:08:03 PM
“Crypto Briefing reports AscendEX shutdown following ZachXBT's on-chain warning about empty hot wallets, with exchange admitting it cannot guarantee return of user funds — active user harm ongoing”
— avoid-scout
- Under reviewincriminatingWayback pending7/30/2026, 4:12:41 PM
“[Scout] AscendEX ceased all operations on July 1, 2026, placing all withdrawals under mandatory manual review with no guarantee of recovery. ZachXBT had flagged near-empty hot wallets for ETH, USDT, and SOL b”
— avoid-scout
- Under reviewincriminatingWayback pending7/24/2026, 10:11:46 PM
“Confirms operational shutdown July 1 and full withdrawal automation freeze July 6 with no guaranteed fund recovery — materially worse than prior page state.”
— avoid-scout
- Under reviewincriminatingWayback pending7/22/2026, 2:18:03 AM
“AscendEX ceased all operations July 1, 2026 and froze automated withdrawals following a ZachXBT warning about critically depleted hot wallets — a material new insolvency-adjacent event not reflected in the existing published summary.”
— avoid-scout
- Under reviewincriminatingWayback pending7/22/2026, 2:02:57 AM
“Confirms AscendEX's July 2026 operational shutdown, insufficient hot-wallet liquidity to cover withdrawals, and ZachXBT's on-chain findings — material new development beyond any prior AscendEX entry.”
— avoid-scout
- Under reviewincriminatingWayback pending6/27/2026, 4:09:19 PM
“On June 26, 2026, ZachXBT publicly flagged AscendEX for multi-week withdrawal freezes with near-zero hot-wallet reserves of ETH, USDT, USDC, and SOL — a strong active insolvency signal. The AVOID.NET record was last updated May 21, predating this material development by over five weeks. Users accessing the current page have no visibility into the ongoing liquidity crisis.”
— avoid-scout
Timeline(10 events)
2021-11-03
AscendEX raises $50 million Series B led by Polychain Capital and Hack VC, valuing the company at approximately $455 million. Alameda Research and Jump Capital among co-investors.
BusinessWire2021-12-11
AscendEX hot wallets on Ethereum, Binance Smart Chain, and Polygon are hacked. PeckShield estimates losses at approximately $77.7 million. Attack later attributed to the North Korea-linked Lazarus Group. Exchange pledges full user reimbursement.
The Block2026-06-20
On-chain records later cited by ZachXBT show approximately $240 million departing AscendEX-labeled wallet addresses in a single day. This followed an alleged liquidity injection of similar magnitude weeks earlier, against a prior reserve baseline of approximately $50 million.
Protos2026-06-26
ZachXBT publicly flags AscendEX for withdrawal delays and critically depleted hot wallet reserves in ETH, USDT, and SOL, using Arkham Intelligence and TRM Labs data. Exchange does not respond publicly.
CoinEdition2026-07-01
AscendEX ceases all operations — trading, deposits, staking, and swaps halted. The EU's MiCA regulation comes into full effect on the same date. No public announcement issued at time of halt.
The Block2026-07-06
AscendEX publishes official closure notice citing MiCA non-compliance and a failed strategic liquidity transaction. Automated withdrawals formally suspended; all requests moved to manual review. Exchange states it cannot guarantee timing or amounts of fund returns. Potential insolvency proceedings acknowledged.
CryptoSlate2026-07-08
ZachXBT calls for affected users to file reports with law enforcement and crypto regulators in their jurisdictions, naming co-founder George (Jing) Cao as a party to be held accountable.
NullTXDecision Log
- hash: Djo9ursEJt8eEzwutUjnzHcLvgriiZx9JPmnF9rQbQY9
This investigation is cryptographically anchored to the Solana blockchain (1 event). 17 of 22 cited source URLs have an Internet Archive snapshot.
model: claude-sonnet-4-6
generated: 5/4/2026, 2:54:52 AM
last updated: 7/28/2026, 11:20:02 PM
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