AscendEX Shuts Down as MiCA Licensing Gap and Liquidity Strain Trigger Suspension

AscendEX has suspended trading and withdrawals, saying it stopped operating on July 1 and disclosed the decision in a July 6 notice. The exchange cited the EU’s newly enforced Markets in Crypto-Assets (MiCA) regime, stating it does not hold the required authorization, and pointed to escalating financial and operational stress. AscendEX warned it "cannot guarantee that customers will be able to withdraw all of the digital assets held in their accounts." Customer access is now limited to offboarding. Automated withdrawals have been halted, with withdrawal requests handled manually and subject to significant delays. The company said a planned strategic transaction intended to bolster liquidity "did not perform," and that weak market conditions further pressured the business. AscendEX added it is assessing its financial position and will provide an update once it has more clarity. It also noted that if formal insolvency or similar proceedings begin, unresolved customer claims may be addressed through those legal processes. On-chain investigator ZachXBT had raised concerns in recent weeks, citing users reporting withdrawals pending for days or weeks. He said a review of AscendEX’s hot wallets indicated minimal balances in major assets including ETH, USDT, USDC and SOL, while acknowledging exchanges may hold reserves via cold wallets, third-party custodians or unlabeled addresses. ZachXBT urged affected users to contact law enforcement and financial regulators, and alleged the platform continued to accept deposits while many withdrawals remained unprocessed. He also said one large user received no response from co-founder George Jing Cao. AscendEX launched in 2018 as BitMax before rebranding. The exchange previously suffered a major hack in 2021 that resulted in about $78 million in losses; the incident was later linked to the Lazarus Group. Users are advised not to deposit additional funds, to preserve account records and transaction documentation, and to follow official AscendEX updates. Those with large or unresolved balances may also consider seeking legal advice based on their jurisdiction. AscendEX did not provide a timetable or assurances regarding how much customers may ultimately recover, underscoring how regulatory changes and liquidity stress can rapidly destabilize centralized crypto platforms.