On-chain investigator ZachXBT has publicly questioned the financial health of cryptocurrency exchange AscendEXafter mounting reports of users waiting days—and in some cases weeks—to withdraw their funds. After reviewing the exchange’s publicly identifiable hot wallets, ZachXBT warned that they appear to hold unusually low balances of major cryptocurrencies such as Bitcoin, Ethereum, Solana, USDT, and USDC, fueling concerns that the exchange could be experiencing liquidity problems. While AscendEX has not confirmed any financial issues, the growing number of withdrawal complaints has renewed fears of another centralized exchange crisis.
The allegations come at a time when confidence in centralized exchanges remains fragile following the collapses of FTX, Celsius, and several other crypto platforms over the past few years. Although there is currently no evidence proving AscendEX is insolvent, the combination of delayed withdrawals, unanswered customer complaints, and limited visible reserves has raised significant concerns across the crypto community.
Users Report Withdrawals Stuck for Weeks
According to ZachXBT, numerous AscendEX customers have reported withdrawal requests remaining in an “initiating”status for extended periods without generating a blockchain transaction.
Several users claim their account balances were deducted immediately after requesting withdrawals, yet no transaction hash (TXID) was ever created, preventing them from tracking their funds on-chain. Others say customer support acknowledged their requests but provided little additional information or estimated resolution timelines. As complaints spread across Reddit, Telegram, and social media, concerns quickly escalated beyond isolated technical issues.
ZachXBT Questions the Exchange’s Visible Reserves
The most significant concern came from ZachXBT’s on-chain investigation. After reviewing AscendEX’s known hot wallets using blockchain analytics platforms Arkham and TRM Labs, he observed that the exchange appeared to hold relatively small balances of several major cryptocurrencies commonly used to process customer withdrawals.
According to ZachXBT, the wallets appeared to lack substantial holdings of:
- Ethereum (ETH)
- USDT
- USDC
- Solana (SOL)
He described the findings as a potential indication that the exchange may be facing liquidity challenges, while emphasizing that the available evidence suggests—not proves—such a scenario.
Hot Wallets Alone Do Not Prove Insolvency
While the findings have generated significant attention, blockchain analysts caution against drawing immediate conclusions. Most centralized exchanges keep only a small percentage of customer assets in publicly visible hot wallets, while the majority of reserves are typically stored in offline cold wallets that may not be publicly identifiable.
As a result, low balances in known hot wallets should be viewed as a warning sign requiring further explanation—not definitive proof that an exchange lacks customer assets. The most effective way to resolve those concerns would be for AscendEX to provide updated proof of reserves or publicly explain the cause of the withdrawal delays.
AscendEX Has Yet to Address the Allegations
As of publication, AscendEX has not released a detailed public statement responding directly to ZachXBT’s concerns or the growing number of withdrawal complaints.
The exchange’s support documentation notes that users should normally receive a blockchain transaction ID within approximately two hours after requesting a withdrawal and advises customers to contact support if no transaction hash appears. However, many affected users claim they have waited significantly longer without receiving updates. The lack of communication has become one of the primary concerns expressed by customers.
The Exchange Has Faced Challenges Before
AscendEX, formerly known as BitMax, was founded in 2018 and has experienced major security incidents in the past. In December 2021, the exchange suffered a hack that resulted in approximately $78 million in stolen assets. The attack was later linked by investigators to North Korea’s Lazarus Group. Although unrelated to the current withdrawal issues, the previous breach has resurfaced in community discussions surrounding the platform’s operational resilience. The current situation, however, centers on liquidity concerns rather than cybersecurity.
Users Warned About Recovery Scams
As reports of frozen withdrawals spread, cybersecurity experts are also warning users about a secondary threat. Fraudsters frequently target victims of exchange disruptions by offering so-called “fund recovery services” that promise to unlock frozen assets in exchange for upfront payments or wallet access.
Security researchers stress that these offers are almost always scams designed to steal additional funds from already affected users. Anyone experiencing withdrawal issues should communicate only through AscendEX’s official support channels.
