AscendEX’s shutdown has renewed concerns over customer withdrawals after the exchange confirmed that automated payouts have been paused and all requests will now go through manual review.
The exchange said it ceased operations from July 1, 2026, citing the EU’s MiCA framework, lack of required authorization, and broader financial and operational pressure. Users can no longer open accounts, deposit funds, trade, swap, stake, lend, or access other exchange services.
The closure follows AscendEX withdrawal delays and possible liquidity concerns previously flagged by blockchain investigator ZachXBT. He said users had reported delayed or unprocessed withdrawals, while known AscendEX hot wallets appeared low on major liquid assets such as ETH, USDT, and SOL.
AscendEX has not directly confirmed a liquidity shortage. However, its manual withdrawal review, disclosure of a failed liquidity-related transaction, and ZachXBT’s hot-wallet allegations have intensified questions over whether customer payouts can proceed normally.
Withdrawals Move to Manual Review
AscendEX said automated withdrawals were paused from July 6, 2026. All withdrawal requests will now be checked manually before processing, with reviews depending on legal, technical, and operational requirements.
For users, this means:
- Withdrawals are no longer automatic.
- Requests may require additional information.
- Processing time is not guaranteed.
- Final withdrawal amounts are not assured at this stage.
The exchange also said it is assessing its financial position and available options for account holders. That statement leaves room for further updates, but it also shows that customer recovery remains uncertain for now.
The situation adds to a broader warning for crypto users when platforms enter wind-down mode. Ctrl Wallet recently told users to move funds before its August 3 shutdown after a security incident, showing how service closures can leave customers with limited time to act.
ZachXBT Keeps Pressure on Exchange Response
ZachXBT’s later said suggest user frustration continued after his initial warning. He claimed AscendEX had suspended withdrawals for multiple users and said some affected customers were still struggling to get responses from the exchange. He also alleged that deposits had continued while withdrawals were not being processed, adding pressure before the official wind-down became public.
The AscendEX case also follows ZachXBT’s recent dispute with KuCoin over alleged Atomic Stealer-linked fund flows. That earlier episode showed how investigator-led wallet tracing can quickly put centralized exchanges under public scrutiny when users question how platforms handle disputed funds.
AscendEX has not publicly accepted ZachXBT’s liquidity allegations. Still, its own notice confirms the practical issue users now face: exchange services have stopped, automated withdrawals are paused, and payout requests depend on manual review.
MiCA Explains the Exit, But Fund Questions Remain
AscendEX linked its closure to MiCA, saying it does not hold the required authorization under the regulation. But the timing remains sensitive because withdrawal complaints had surfaced before the shutdown notice.
That makes ZachXBT’s warning important to the story without treating it as confirmed fact. At this stage, the clearest confirmed details are that AscendEX has stopped operating, paused automated withdrawals, and is still assessing its financial position.
For now, customers still lack a clear timeline for recovering funds. The next major development will depend on whether manual reviews lead to successful payouts or whether AscendEX provides a more detailed update on its financial position.
