Alisa Davidson
Printed: July 08, 2026 at 10:32 am Up to date: July 08, 2026 at 10:32 am
Edited and fact-checked:
July 08, 2026 at 10:32 am
In Transient
Crypto trade AscendEX ceases operations citing EU rules, sparking withdrawal fears as investigators flag empty scorching wallets.
Centralized cryptocurrency trade AscendEX has ceased all enterprise operations, the corporate confirmed in an official announcement. The platform, which was as soon as ranked among the many high ten exchanges globally by buying and selling quantity, cited the total implementation of the EU Markets in Crypto-Property Regulation (MiCA) — underneath which it holds no authorization — alongside broader regulatory, monetary, and operational pressures because the driving components behind the choice. The corporate additionally disclosed {that a} strategic transaction meant to offer platform liquidity had failed after the counterparty didn’t carry out, compounding current monetary pressure.
As of July 6, all withdrawal requests are topic to obligatory handbook overview, with automated withdrawals suspended. In its announcement, AscendEX acknowledged that requests “could also be delayed, might require extra info, or will not be processed,” stopping in need of providing any assurances on timing or quantities. The platform said it’s assessing its monetary place and exploring accessible choices, warning {that a} formal insolvency course of might comply with, which might topic unresolved balances to additional proceedings. Customers have been directed to submit withdrawal requests solely by official platform channels and are urged to not make new deposits.
ZachXBT Flags Liquidity Gaps
The shutdown got here after blockchain investigator ZachXBT raised public warnings in regards to the platform, reporting a number of person complaints of delayed or unprocessed withdrawals. He famous that AscendEX’s public scorching wallets appeared to lack liquid belongings — together with ETH, USDT, and SOL — and subsequently verified person claims amounting to a number of seven figures. Following the official closure announcement, ZachXBT confirmed the wallets nonetheless lacked enough liquidity to meet excellent withdrawal requests and urged affected customers to file reviews with legislation enforcement and regulators of their respective jurisdictions, naming co-founder George (Jing) Cao as a celebration to be held accountable.
Based in 2018 underneath the identify BitMax by Cao and Ariel Ling, AscendEX raised a $50 million Collection B spherical in 2021 led by Polychain Capital and Hack VC. The trade had already confronted a big setback in December 2021 when it suffered a hack attributed to the Lazarus Group, leading to roughly $78 million in losses. The most recent developments mark a stark reversal for a platform that when attracted top-tier institutional backing and held a outstanding place within the international crypto trade panorama.
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About The Creator
Alisa, a devoted journalist on the MPost, focuses on crypto, AI, investments, and the expansive realm of Web3. With a eager eye for rising developments and applied sciences, she delivers complete protection to tell and have interaction readers within the ever-evolving panorama of digital finance.
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Alisa, a devoted journalist on the MPost, focuses on crypto, AI, investments, and the expansive realm of Web3. With a eager eye for rising developments and applied sciences, she delivers complete protection to tell and have interaction readers within the ever-evolving panorama of digital finance.
Extra articles
