Multiple users are reporting trouble withdrawing funds from the cryptocurrency exchange AscendEX. A blockchain investigator known as ZachXBT has raised concerns that the platform might be facing liquidity problems.
On Tuesday, an X account under the name Lorenzo Navarro Rodriguez said a withdrawal of 4,196 USDT had been stuck in an “initiating” state since June 10. The account also claimed that repeated attempts to contact customer support had received no response.
At least five other users replied to that post over the following days, sharing similar stories about delayed withdrawals.
Then, on Friday, ZachXBT posted on Telegram that AscendEX’s wallets lack large reserves of major cryptocurrencies like Ether (ETH), USDT, and Solana (SOL). He suggested this could indicate “liquidity issues” on the platform. ZachXBT urged the exchange to address the withdrawal delay reports and explain why its hot wallets hold so little of these widely traded assets.
Why reserves matter for exchanges
Exchanges need liquid reserves of popular assets to process customer withdrawals smoothly. If a platform runs short of such assets, withdrawals can get delayed. In severe cases, it can even lead to insolvency.
ZachXBT flagged the issues on Telegram, including a screenshot showing AscendEX’s wallet balances. The post has since gained attention across crypto communities.
AscendEX’s holdings are mostly small-cap tokens
Blockchain data from Arkham, viewed by Cointelegraph on Friday, shows that wallets linked to AscendEX hold roughly $20.2 million in cryptocurrency. But these holdings are concentrated in smaller-cap assets, with very limited amounts of major cryptocurrencies.
The largest single holding was about $10 million in UNITE tokens. The next biggest was $5.24 million in REUR, followed by $2.9 million in ASD and $600,000 worth of Reservoir rUSD stablecoins. Other tokens in the wallets are even smaller.
No response from AscendEX yet
Cointelegraph reached out to AscendEX for comment but did not get a reply before this article was published.
Questions about an exchange’s liquidity are especially sensitive in the crypto industry. The collapse of FTX in 2022 showed how quickly a liquidity shortfall can unravel when customers try to withdraw. Back then, a flood of withdrawal requests exposed a multibillion-dollar gap, leading to bankruptcy.
That event triggered a wave of withdrawals across the industry, brought heavier regulatory scrutiny, and pushed many exchanges to publish proof-of-reserves reports to reassure users. Now, with AscendEX under similar questions, the situation is drawing fresh attention.
