AscendEX shutters operations; withdrawals may be limited
AscendEX halted operations July 1, citing lack of EU MiCA authorization and financial strain. The exchange warned users they may not be able to withdraw full crypto balances.
AscendEX ceased platform operations effective July 1 and restricted account access to limited offboarding activity, saying automated withdrawals have been paused while requests undergo manual review. The company warned users that they may not be able to withdraw the full balances they held on the platform.
In a notice dated July 6, AscendEX said it is assessing the company’s financial position and evaluating options for account holders. The notice said the firm cannot give assurances about the timing or amounts of any withdrawals and that requests will be reviewed manually and could be delayed. It added that no account holder or group will receive priority outside a documented review process.
AscendEX pointed to the full implementation of the European Union’s Markets in Crypto-Assets regulation, MiCA, on July 1 and said it does not hold authorization under the new rules. The exchange also cited other financial and operational problems and said a planned strategic transaction meant to provide liquidity did not complete. “We relied on an agreed strategic transaction that was to provide liquidity to grow the platform, and the counterparty did not perform; wider crypto market conditions have added further pressure,” the company wrote.
Onchain investigator ZachXBT flagged reports of delayed withdrawals and reported that analysis of AscendEX hot wallets showed low reserves of major assets including ETH, USDT, USDC and SOL. ZachXBT advised users to file reports with law enforcement and regulators to seek recourse.
AscendEX warned that if any formal insolvency or similar process is opened, the handling of unresolved balances or claims would be governed by that process. The exchange said it expects to provide further details when it is able to do so.
Founded in 2018 as BitMax, AscendEX previously suffered a 2021 hack that resulted in roughly $78 million in losses. Customers attempting withdrawals should expect manual reviews and potential delays while the company evaluates its position.
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