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Ahmed Barakat
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AscendEX has stopped all operations July 1, 2026, and told users that it cannot guarantee a full refund of their balances, causing serious concern for the exchange. The exchange published its announcement on July 6, five days after the suspension of operations, citing MiCA compliance requirements, system failures, and market disruption as the main reasons for the closure of the crypto.
The July 6 announcement described the financial difficulties of the exchange in specific language. “We relied on a mutually agreed upon method to provide funding to grow the platform, and the group did not succeed; the crypto market added additional pressure,” AscendEX said. The exchange added that it is reviewing the options available to account holders while warning that it cannot guarantee the timing of withdrawals or refunds.
MiCA also participated in the decision. European Markets Regulations in Crypto-Assets came into force on July 1, and AscendEX is not authorized under this regulation. However, the change also revealed financial and operational issues, suggesting that a number of factors contributed to its closure rather than legislation alone.
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ZachXBT Has Been Known To Be Low Five Days Before The Announcement
Chain researcher ZachXBT raised concerns on June 26 after receiving several reports of slow withdrawals from AscendEX users. His review of publicly listed hot wallet addresses found the lowest ratings for ETH, USDT, USDC, and SOL.
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According to reports citing ZachXBT Telegram postThe hot exchange wallets appeared to be insufficient to compensate for several withdrawal requests reported by users. He advised the affected customers to report to the financial and legal authorities in their areas and warned them not to invest extra money.
AscendEX has also stopped automatic withdrawals, and all requests are now subject to manual review. The exchange also said, “We cannot confirm the timing or amount today. No account holder or group of account holders is being prioritized outside of the review process.”
A Platform with a Prior Hacking and Reputation like BitMax
AscendEX was launched in 2018 as BitMax before rebranding in March 2021. Later that year, the exchange suffered a $78 million hot wallet hack that the blockchain security company claims is North Korea’s Lazarus Group.
At the time, AscendEX said it would issue full refunds to affected users. This answer differs from the current one, which says that it cannot guarantee the timing or amount of any wealth. The extent of the current shortage is still unknown.
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What’s Next for AscendEX Users
The next big development will be if AscendEX enters the insolvency process. Its July 6 notification reads, “If any problem or other similar procedures are initiated, treatment of outstanding balances or claims may be pursued accordingly.” Although no such event has been announced, the exchange has admitted that it is possible.
Users who have funds on the platform must keep a record of account and withdrawal requests. Following ZachXBT’s recommendations, affected customers may also consider submitting their reports to their local financial and regulatory authorities. At this time, withdrawals are only being reviewed manually, and AscendEX has not provided a timeline for resolving outstanding complaints.
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