AscendEX Faces Withdrawal Delays as ZachXBT Flags Liquidity Concerns
Users report stuck withdrawals on AscendEX after on-chain sleuth ZachXBT publicly questioned the crypto exchange's reserve position.
Crypto exchange AscendEX is under growing scrutiny after multiple users reported that their withdrawal requests were being delayed, a red flag in an industry still scarred by high-profile exchange collapses. The complaints surfaced alongside a public challenge from blockchain investigator ZachXBT, who questioned the platform's liquidity and called on AscendEX to provide transparent proof of its reserves.
ZachXBT, widely recognized in the crypto community for exposing fraudulent projects and exchange irregularities, urged AscendEX to publicly address concerns about whether it holds sufficient assets to meet customer obligations. The call for transparency echoes a broader post-FTX demand across the industry for exchanges to publish verifiable proof-of-reserve attestations rather than rely on self-reported figures.
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Withdrawal freezes or slowdowns are among the most alarming signals users can encounter on a centralized exchange, as they were a defining early warning sign before the collapse of FTX in 2022. While AscendEX has not been accused of outright insolvency, the combination of user complaints and a high-profile investigator's skepticism has fueled concern about the platform's financial health.
AscendEX, formerly known as BitMax, operates as a centralized trading platform serving a global user base. The exchange had not issued a detailed public response to the reserve questions at the time of reporting, leaving users and observers uncertain about the state of its liquidity. Exchanges that fail to respond swiftly to such concerns often see accelerated user withdrawals, compounding any underlying pressure.
The episode underscores the continued vulnerability of centralized crypto platforms to confidence crises, particularly when on-chain investigators with large audiences raise public doubts. Continue reading at Cointelegraph.
