AscendEX to Wind Down, Says Liquid Assets Can't Fully Meet Withdrawal Demand
AI Market Summary
AscendEX has halted operations after disclosing that liquid assets are insufficient to meet withdrawal demand, with withdrawals moved to manual review and potentially delayed or unprocessable. The shutdown, attributed to market conditions and EU MiCA-related pressures, raises counterparty and custody risk concerns and may tighten liquidity for affected users. The event reinforces broader exchange-solvency risk awareness in crypto markets.
Impact level
● Medium
Affected assets
BTC/USDT-2.67%
AI Insight · BTC/USDTAI Insight
▼ Bearish
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On July 8 (UTC+8), on-chain investigator ZachXBT published information confirming that crypto exchange AscendEX has formally announced it is ceasing operations, saying its current liquid assets are insufficient to cover user withdrawal requests. The exchange attributed the decision to market conditions and the EU's MiCA regulatory framework.
AscendEX said it fully suspended services including new account registration, trading and deposits on July 1, leaving only limited functions such as account inquiries and withdrawals. From July 6, all withdrawal requests were automatically moved to manual review. The platform warned processing could face significant delays and, in some cases, may not be completed.
ZachXBT's findings indicate user claims for unpaid withdrawals total millions of dollars, while AscendEX's hot wallet holds far less liquid assets than required. The exchange said it is assessing its financial position and plans for handling user assets, with further details to be released separately. (Source: ODAILY)
