AscendEX, the centralized crypto exchange formerly known as BitMax, pulled the plug on July 1, 2026. The shutdown came less than a week after on-chain investigator ZachXBT publicly warned that the platform’s hot wallets were running dangerously low on major assets like ETH, USDT, and SOL.

Users still trying to get their money out are now stuck in a manual review process. Automated withdrawals have been completely suspended.

What happened

On June 26, ZachXBT sounded the alarm. The blockchain detective flagged reports of extensive withdrawal delays on AscendEX alongside critically depleted hot wallet reserves.

The exchange initially tried to reassure users that deposits were still functioning normally. Within days, the situation deteriorated. AscendEX suspended new account registrations, deposits, trading, and essentially every function besides withdrawals. Even those withdrawals now require manual processing.

The official explanation from AscendEX pointed to two factors: a lack of authorization under the European Union’s Markets in Crypto-Assets (MiCA) regulation, and a failed strategic transaction that was supposed to shore up the exchange’s liquidity.

The platform has advised users with stuck funds to report their situations to regulators.

A troubled history

The platform launched in 2018 as BitMax before rebranding to AscendEX in 2021. In December 2021, the exchange suffered a hack that drained approximately $78 million from its hot wallets. The breach was later attributed to the Lazarus Group, North Korea’s state-sponsored hacking operation.

Just months earlier, AscendEX had completed a $50 million Series B funding round led by Polychain Capital and Hack VC. That capital was meant to enhance service offerings and expand the platform’s reach.

Why ZachXBT’s warning matters

ZachXBT’s June 26 warning didn’t cause AscendEX to fail. The exchange was already in trouble. But the public alert served as a critical early warning system for users who might have otherwise left funds on the platform right up until the doors closed. The window between ZachXBT’s warning and the full shutdown was less than a week.

What this means for investors

The regulatory angle here is worth watching closely. MiCA was designed to prevent exactly this kind of scenario by requiring exchanges to meet licensing standards before serving European customers. AscendEX’s inability to obtain that authorization was a direct trigger for the shutdown.

For traders still holding funds on AscendEX, the playbook is straightforward but unpleasant: file withdrawal requests, document everything, and report to relevant financial regulators if funds remain inaccessible. The manual review process means there’s no guaranteed timeline for getting assets back.