ZachXBT Warns of Withdrawal Delays and Liquidity Issues at AscendEX
On-chain investigator ZachXBT pointed out that AscendEX (formerly BitMax) has multiple reports of user withdrawal delays or unprocessed requests, lasting from several days to weeks.
AscendEX's hot wallet is known to show shortages of major assets such as ETH, USDT, and SOL on Arkham and TRM, indicating potential liquidity issues. The exchange was previously hacked by the Lazarus Group in December 2021.
Market mechanisms show that AscendEX users have become the main sellers withdrawing funds, driving liquidity to other centralized exchanges and self-custody wallets, benefiting competing platforms and on-chain security tools, putting pressure on the AscendEX platform.
Source: Public Information
ABAB AI Insight
AscendEX was previously attacked by the Lazarus Group, and the current withdrawal issues continue the historical behavior of centralized exchanges' hot wallet management risks. Earlier cases of similar liquidity shortages reflect the vulnerabilities of CEX in asset custody.
In terms of capital flow, user funds are stuck on the platform due to withdrawal delays, and the exchange may face reserve pressure, shifting strategic motives towards replenishing liquidity or adjusting operations, reallocating resources from trading fees to risk management.
Similar to other exchanges' withdrawal crisis cases, AscendEX is currently in a phase of ongoing trust and operational challenges following the hack, with ZachXBT's investigation further amplifying market concerns.
Essentially, this is a matter of regulatory changes and capital concentration, with hot wallet depletion exposing custody risks. The mechanism is that declining user confidence leads to capital outflow, shifting pricing power towards options with higher transparency or decentralization, and driving the crypto trading industry chain towards better reserve proof reconstruction.
ABAB News · Cognitive Law
Liquidity Crisis = Hot Wallet Consumption × User Trust × Withdrawal Pressure
CEX sells convenience, users sell security; whoever depletes reserves loses capital flow.
The more historical hacks, the easier the problem recurs; the counterintuitive aspect is that delays accelerate user migration to self-custody.