Crypto Exchange Halts Operations: Wallets Drained, Payments at Risk
Crypto exchange AscendEX has announced it is halting operations due to regulatory pressures and financial difficulties, as major uncertainty looms over user payments.
The turmoil in the crypto world continues as another platform has decided to shut its doors completely. AscendEX, founded in 2018 and formerly known as BitMax, officially announced it ceased operations as of July 1st. In a statement released by the company, it was noted that the decision was driven by the implementation of the European Union’s new crypto regulation, MiCA, and significant liquidity issues.
Exchange management stated that they lacked the necessary authorizations under MiCA and that a long-awaited strategic financing support failed to materialize. This situation destabilized the platform’s financial balance, leading to an operational deadlock. Currently, access to the platform remains open only for limited transactions, while automatic withdrawals have been completely halted. It was emphasized that requests will be reviewed manually, but no guarantee can be given regarding the timing or amount of payments.
Uncertainty Continues for AscendEX Users
The biggest concern for users is whether the balances on the platform will be fully refunded. The company used language implying that it might not be able to meet all withdrawal requests due to the current financial bottleneck. Renowned on-chain data researcher ZachXBT recently reported that the platform’s hot wallets are nearly empty, with core assets such as Ethereum, USDT, USDC, and Solana (SOL) reaching a point of exhaustion.
Shaken by a massive $78 million cyberattack in 2021, the exchange has struggled to recover ever since. In the current scenario, the uncertainty behind closed doors and the financial situation raising red flags make it necessary for users to contact legal authorities. The company stated that in the event of a possible bankruptcy process, payments will be determined according to that legal procedure. Whether users will be able to recover their assets will become clearer in the coming days.