On-chain investigator ZachXBT urged AscendEX users to file complaints with law enforcement and financial regulators after the exchange failed to process withdrawals for days or weeks while continuing to accept deposits. The call came after AscendEX had not posted on X for nine days since ZachXBT's initial alert, according to a Telegram update. ZachXBT reviewed a case involving a large victim who reportedly received no response from AscendEX co-founder George Jing Cao. The situation follows a pattern seen in prior crypto exchange collapses where withdrawals slow, platforms remain silent, and deposits stay open after the first signs of trouble.
ZachXBT Reviews AscendEX Hot Wallets and Finds Major Assets Missing
ZachXBT reviewed known AscendEX hot wallets using Arkham and TRM and said they appeared to lack major assets, including ETH, USDT, USDC, and SOL. AscendEX has not confirmed or denied the liquidity claims. Exchange reserves can include cold wallets and third-party custody not publicly labeled on-chain.
ZachXBT questioned AscendEX directly on X after the exchange promoted a new token listing on June 23. He asked why hot wallets lacked liquid assets and warned that no one should deposit funds until the company provides clear answers. "If you have funds stuck, I encourage you to file a report with law enforcement and regulators in your country," ZachXBT wrote.
Withdrawal delays are one of the most important trust signals for centralized platforms. When users request withdrawals, they expect a transaction ID and a clear timeline. If funds leave the account balance but no blockchain transaction appears, users have limited ways to verify that their assets still exist on the platform.
AscendEX Suffered $78 Million Hack in December 2021
AscendEX, formerly known as BitMax, was hacked for roughly $78 million in December 2021, with the Lazarus Group later linked to the attack. That prior loss makes the current withdrawal freeze more concerning, as it raises the question of whether the exchange has fully rebuilt its reserve position after the breach.
The exchange was founded by George Jing Cao and Ariel Ling in 2018. Its current regulatory standing remains unclear in public filings. Users in the United States, the United Kingdom, and the European Union may have clearer enforcement channels than those in other jurisdictions.
JuCoin Faces Similar Withdrawal Delays and Reserve Concerns
ZachXBT also flagged JuCoin over similar withdrawal delays and reserve concerns earlier in June. JuCoin blamed delays on upgrades and restructuring, while users questioned the quality of its reserves. The parallel cases highlight that centralized exchanges without proof-of-reserves audits remain a persistent risk in 2026, even after the high-profile collapses of FTX and others in prior years.
Whether regulatory complaints will accelerate fund recovery depends on AscendEX's jurisdiction and licensing status. Until AscendEX provides a public accounting of its reserves or processes outstanding withdrawal requests, the platform remains in a holding pattern that grows more damaging with each day of silence.
FAQ
What did ZachXBT tell AscendEX users to do?
ZachXBT urged AscendEX users to file complaints with law enforcement and financial regulators in their countries after the exchange failed to process withdrawals for days or weeks while continuing to accept deposits.
What did ZachXBT find when reviewing AscendEX hot wallets?
ZachXBT reviewed known AscendEX hot wallets using Arkham and TRM and said they appeared to lack major assets, including ETH, USDT, USDC, and SOL. AscendEX has not confirmed or denied the liquidity claims.
When was AscendEX hacked and how much was stolen?
AscendEX, formerly known as BitMax, was hacked for roughly $78 million in December 2021, with the Lazarus Group later linked to the attack.
