The cryptocurrency trading platform AscendEX is under increasing scrutiny as users report prolonged delays and transaction failures with their withdrawal requests. Complaints from affected customers have surfaced online, highlighting significant issues in processing transactions, with some users waiting days without resolution.
What Does On-chain Data Reveal?
An examination conducted by blockchain expert ZachXBT revealed alarming details about AscendEX’s available liquid balance in their hot wallets. According to his June 26 analysis, sourced from Arkham and TRM, these wallets exhibit sparse liquid resources, casting doubt on AscendEX’s ability to manage withdrawal demands effectively.
Why Are Withdrawals Delayed?
User complaints suggest a consistent pattern of withdrawal troubles extending over several days before ZachXBT’s insights. Notably, an investor from JurisProtocol highlighted a three-and-a-half-day delay in processing a USDT withdrawal, with no transaction ID being offered. Attempts to reach AscendEX support remained unacknowledged, deepening user frustration. Similar accounts from other users describe prolonged processing states without transaction verification on the blockchain.
Significantly low balances in hot wallets need not spell insolvency issues, as exchanges traditionally secure most customer holdings in cold wallets for safekeeping. While ZachXBT has refrained from declaring AscendEX insolvent, he suggested the observed data might point to liquidity challenges.
“We need answers about why withdrawal processes are flawed and why hot wallet holdings are limited. This isn’t the time to deposit more funds,” cautioned ZachXBT.
Key pieces of information from the article reveal:
- User reports indicate long-standing withdrawal issues.
- Hot wallet inspections show minimal liquid reserves.
- No public explanation from AscendEX as of June 26.
- Security incidents have previously burdened the platform.
AscendEX, established as BitMax in 2018 by founders George Jing Cao and Ariel Ling, is known for its comprehensive offerings in the digital trading sector. Despite its broad asset listings, it’s contending with past and present security breaches. Today’s challenges are compounded by predatory third-party scams enticing users to pay for alleged recovery services. Users are advised to exercise caution against potential frauds as they navigate these uncertain conditions.
