AscendEX delays user withdrawals due to possible liquidity problems

Crypto researcher ZachXBT raises the alarm about the centralised exchange AscendEX, formerly known as Bitmax. He reports having received multiple reports indicating that the exchange is delaying or not processing user withdrawals at all for days, sometimes even weeks. According to ZachXBT, the platform’s reserves point to serious liquidity problems.

Reserves lack major coins such as Ethereum and Solana

ZachXBT examines AscendEX’s known hot wallets using the tools Arkham and TRM. What he finds is telling: the reserves appear to be lacking major tokens such as Ethereum, which is currently at $1.563,92 (a decline of 5.3% in the past 24 hours), USDT and Solana. In his view, this strongly suggests that the platform is grappling with liquidity shortfalls.

The findings do not come out of the blue. Several users are already reporting problems withdrawing their crypto, which is significantly eroding confidence in the platform among many people. ZachXBT shares his warning as a community alert so that users are aware of the situation and can take action if necessary.

Exchange previously hacked by the Lazarus Group

AscendEX was founded in 2018 by George (Jing) Cao and Ariel Ling. The platform already has a turbulent past: in December 2021 it was hacked by the notorious Lazarus Group, a hacker collective with ties to North Korea. That attack allegedly resulted in a loss of $78 million.

The current situation surrounding withdrawals is reminding many of previous cases in which exchanges ran into financial trouble and eventually closed their doors. Whether AscendEX is actually in acute difficulty has not yet been officially confirmed by the platform itself. Users who hold crypto on the exchange would be wise to keep a close eye on the situation. Earlier, thelatestcryptonews.com reported on an acquisition in the crypto exchange world: SBI acquires Japanese crypto exchange Bitbank for $289 million.