AscendEX Ceases Operations as ZachXBT Confirms Wallets Were Empty

AscendEX, the centralized cryptocurrency exchange formerly known as BitMax, ceased operations on July 1, 2026, the company said in a notice on its website. The shutdown takes effect the same day the European Union’s Markets in Crypto-Assets Regulation (MiCA) becomes fully applicable, and AscendEX cited its lack of the required authorization.

On-chain investigator ZachXBT had warned since June 26 that the exchange’s hot wallets held effectively no liquid assets. By the time the closure was confirmed, co-founder George (Jing) Cao had stopped answering large-claimant messages and the AscendEX official X account had gone quiet for nine days.

What AscendEX Told Its Users

In a user email and on its homepage, AscendEX attributed the shutdown to the absence of a MiCA license and what it called “broader regulatory, financial, and operational circumstances.” The exchange added that it had been counting on a “coordinated strategic deal” to keep the platform solvent. The counterparty to that deal had failed to meet its obligations, the company said. Market conditions made it worse.

Accounts remain reachable only for the narrow purpose of exiting. Users can submit withdrawal requests, update KYC details, file complaints, and export transaction histories. They cannot open new accounts, deposit, trade, stake, borrow, or take part in promotions.

What ZachXBT Saw Before the Announcement

The first public alarm came on June 26, 2026, when ZachXBT posted a community alert on X. Multiple users had reported withdrawal requests stuck for days or weeks in an “Initiating” state, and several said their funds had been deducted from their account balances without a transaction ID ever appearing on chain. At the same moment, the platform was still advertising deposits for a new token listing.

On-chain checks via Arkham Intelligence and TRM Labs showed a near-total absence of major liquid assets in AscendEX’s known hot wallets covering EVM, Tron, and Solana networks. Ethereum, USDT, USDC, and Solana holdings had largely drained, and the wallets contained little that an automated withdrawal system could send out. The exchange’s reserves, the data suggested, had been moving for some time before the official statement.

AscendEX did not respond to the questions publicly. The deposit channel stayed open through the period when withdrawals were stalling. Two days before the July 1 closure, ZachXBT listed the questions the company would not answer.

“I recommend your team answers the following questions for the community: 1) Why are AscendEX users reporting delayed or incomplete withdrawals? 2) Why do the AscendEX hot wallets currently not have any liquid assets? No one should deposit funds to this CEX.”

ZachXBT, the on-chain investigator who issued the alert, posted those questions in his June 26 community update. The exchange had not publicly responded to the wallet readings by the time of the closure notice. The contrast showed up in the days beforehand when AscendEX promoted a new token listing on June 23 while user withdrawals were already stuck. The June 23 listing post said deposits, trading, and withdrawals were enabled for that token, while other users were reporting the opposite. The gap between promotional activity and the on-chain reality was the sharpest signal users had.

The Lazarus Hack That Eroded Trust

AscendEX had been here before. In December 2021, the platform’s EVM, Tron, and Solana hot wallets were drained in a single attack later linked to the Lazarus Group, the North Korea-aligned hacking unit. Losses were estimated around $78 million, with Ethereum-based tokens making up most of the total.

At the time, the company committed to compensating affected users and moved unaffected assets to cold storage, and the exchange continued operating for nearly five more years. The Lazarus incident had not been the limit of what the same wallets could be asked to absorb.

The same chains Lazarus touched in 2021 are the chains ZachXBT identified as lacking liquid assets in June 2026. The 2021 attack drained hot wallets in minutes. The 2026 stall built over weeks. No public attribution to Lazarus has been made for the current episode.

Why the Co-Founder Has Gone Silent

As of ZachXBT’s July 2 update, the AscendEX official X account had not posted for 9 consecutive days. The silence matched a more pointed gap. Large claimants who had reached out to co-founder George (Jing) Cao about their stuck funds said they had received no reply, and smaller users described the same pattern of unanswered messages.

ZachXBT’s recommendation to affected users, in the Telegram update that spelled out the advice, was blunt. File a report with law enforcement and the financial regulator in the user’s own country. Deposit nothing new to the platform.

Users are now navigating the closure without a company principal on the record. They cannot tell whether withdrawals will resume, whether the “coordinated strategic deal” was a real counterparty or shorthand for a planned wind-down, or whether an administrator is being lined up. The latest closure notice on the homepage names no executive.

Where Users Stand Now

Anyone with a balance on the platform can submit a withdrawal request through the existing web or app interface. None of those requests are being processed on the standard timeframe any longer. The exchange has said the manual review may include insolvency-related procedures, the language custody firms use when an administrator may be appointed.

The company has also said it is “currently assessing its financial position and analyzing possible options for meeting its obligations to account holders,” per an email quoted in coverage of the closure. If formal bankruptcy proceedings are opened, the route out for users becomes a creditor claim at that point.

ZachXBT’s consistent message to anyone touching the platform during the wind-down has been: do not deposit new funds. Several of the same users who lost access to existing balances in late June had been reassured by token listing posts and promotional activity that the exchange was operating normally. ZachXBT’s June 26 on-chain note had already shown the picture was different. The MiCA deadline was the trigger AscendEX named for the closure, and the MiCA playbook at a larger exchange shows what compliance prep looked like.

Frequently Asked Questions

When did AscendEX cease operations, and what reason did it give?

AscendEX confirmed on its homepage that it ceased operations on July 1, 2026, citing the absence of a MiCA license and “broader regulatory, financial, and operational circumstances.”

Can AscendEX users still withdraw their funds?

Users can submit withdrawal requests, but AscendEX’s own statement says all withdrawals after July 6 are subject to manual review and that processing timelines and amounts are not guaranteed.

What did on-chain investigator ZachXBT find?

ZachXBT reported on June 26 that known AscendEX hot wallets lacked major liquid assets such as ETH, USDT, USDC, and SOL based on data from Arkham Intelligence and TRM Labs, as also noted in coverage of the manual-review freeze.

Has the founder or any executive spoken publicly?

As of July 2, co-founder George (Jing) Cao had not responded to large-claimant messages. AscendEX’s official X account had not posted for nine consecutive days.

What should users with stuck funds do?

ZachXBT advised affected users to file reports with law enforcement and financial regulators in their country, and to stop depositing funds to the platform.

Disclaimer: This content is provided for informational purposes only and does not constitute financial, legal, or investment advice. Cryptocurrency holdings carry significant risk, and figures cited here are accurate as of publication. Consult a qualified professional before making decisions about digital assets.