AscendEX to Shut Down, Users Face Growing Withdrawal Backlog
AI Market Summary
AscendEX's confirmed shutdown and reported liquidity shortfall raise counterparty and custodial risk concerns across centralized exchanges. With withdrawals set to shift to manual review and potentially become unprocessable, near-term sentiment may deteriorate as users reassess exchange exposure and move funds off-platform. While the event appears idiosyncratic, it can temporarily pressure broader crypto risk appetite amid heightened regulatory scrutiny under the EU's MiCA framework.
Impact level
● Medium
Affected assets
BTC/USDT-2.67%
AI Insight · BTC/USDTAI Insight
▼ Bearish
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Odaily Planet Daily reports that on-chain investigator ZachXBT has published verification details indicating crypto exchange AscendEX has formally announced it will cease operations, with current liquid assets said to be close to insufficient to meet user withdrawal demand.
AscendEX attributed the decision to prevailing market conditions and the EU's MiCA regulatory framework. The platform said all services—including new account registration, trading and deposits—will be fully suspended from July 1, leaving only limited functions such as account inquiries and withdrawals.
The exchange added that from July 6, all withdrawal channels will be automatically disabled and moved to manual review. It warned that withdrawals could face significant delays or may not be processed.
ZachXBT's verification indicates pending user claims total millions of dollars, while AscendEX's hot wallet holds severely insufficient liquid assets. AscendEX said it is assessing its financial position and a user asset resolution plan, with further arrangements to be announced separately.
