AscendEX ceased all operations effective July 1, 2026, and informed users it cannot guarantee full recovery of their balances. The exchange published its official notice on July 6, citing a failed strategic transaction that was to provide liquidity, lack of authorization under the EU's Markets in Crypto-Assets (MiCA) regulation, and deteriorating market conditions as the main reasons for the shutdown. The exchange launched in 2018 as BitMax, rebranded in March 2021, and suffered a $78 million hot wallet hack later that year attributed to North Korea's Lazarus Group.
AscendEX Cites Failed Strategic Transaction and MiCA Non-Compliance
The July 6 notice outlined the exchange's financial challenges in direct language. "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," AscendEX said. The exchange added that it is assessing available options for account holders while cautioning that it cannot guarantee withdrawal timing or recovery amounts.
MiCA played a role in the decision. The EU's Markets in Crypto-Assets regulation came fully into effect on July 1, and AscendEX does not hold authorization under that framework. However, the exchange also pointed to financial and operational pressures, suggesting multiple factors contributed to its closure rather than regulation alone.
ZachXBT Reports Low Hot Wallet Balances on June 26
On-chain investigator ZachXBT publicly raised concerns on June 26 after receiving multiple reports of delayed withdrawals from AscendEX users. His review of the exchange's publicly labeled hot wallet addresses found very low balances across ETH, USDT, USDC, and SOL.
According to reports citing ZachXBT's Telegram post, the exchange's hot wallets appeared insufficient to cover multiple seven figure withdrawal requests reported by users. He advised affected customers to file reports with financial regulators and law enforcement in their jurisdictions and warned against depositing additional funds.
AscendEX Launched in 2018 and Suffered $78 Million Hack in 2021
AscendEX launched in 2018 as BitMax before rebranding in March 2021. Later that year, the exchange suffered a $78 million hot wallet hack that blockchain security firms attributed to North Korea's Lazarus Group. At the time, AscendEX said it would fully reimburse affected users. That response stands in contrast to its current position, where it says it cannot guarantee the timing or amount of any asset recovery. The scale of the current shortfall remains unclear.
Exchange Suspends Automated Withdrawals and Implements Manual Review
AscendEX has suspended automated withdrawals, with all requests now subject to manual review. The exchange stated, "We are not in a position to give assurances about timing or amounts today. No account holder or group of account holders is being given priority outside the documented review process."
The exchange's July 6 notice states, "If any formal insolvency or similar process is commenced, the treatment of unresolved balances or claims may be subject to that process." While no such proceeding has been announced, the exchange has acknowledged that possibility. Users with funds on the platform should preserve account records and withdrawal requests. Following ZachXBT's recommendation, affected customers may also consider reporting their cases to financial regulators and law enforcement in their jurisdictions.
FAQ
When did AscendEX cease operations?
AscendEX ceased all operations effective July 1, 2026, and published its official notice on July 6.
Why did AscendEX shut down?
AscendEX cited a failed strategic transaction that was to provide liquidity, lack of authorization under the EU's MiCA regulation effective July 1, and deteriorating market conditions as the main reasons for the shutdown.
What did ZachXBT report about AscendEX on June 26?
On June 26, on-chain investigator ZachXBT reported that AscendEX's publicly labeled hot wallet addresses showed very low balances across ETH, USDT, USDC, and SOL, appearing insufficient to cover multiple seven figure withdrawal requests reported by users.
