ASCEND.EX SHUTS DOWN AMID Liquidity CRISIS AND EU Regulatory CHALLenges
- Singapore-headquartered AscendEx has halted operations since July 1 and is reportedly unresponsive to user inquiries.
- The exchange attributed its closure to financial instability, operational challenges, and regulatory pressures.
- MiCA compliance failure, following its inability to secure authorization amid the EU’s regulatory rollout, was cited as a critical factor.
AscendEx posted a notice on its official website on Monday informing customers of its shutdown, effective July 1. This followed an independent investigation by crypto sleuth ZachXBT, who identified significant liquidity withdrawals from the platform over recent weeks.
What AscendEx Does
Initially launched as BitMax in July 2018, the exchange rebranded to AscendEx in March 2021. It positioned itself as a trading platform catering to both retail and institutional crypto users, with its Chinese name translated as Dingfeng. AscendEx issued the BitMax Token (BTMX) in 2021, though trading activity ceased in June 2021. Eight years after its inception—or five years under the AscendEx brand—the platform ultimately collapsed.
AscendEx’s Collapse
ZachXBT’s investigation revealed escalating user complaints dating to June 26, with many citing prolonged withdrawal delays or unresolved transactions. Analyzing wallet activity across Ethereum, Solana, and Tron networks, ZachXBT uncovered critical liquidity shortages in major assets like Ethereum (ETH), Tether (USDT), and Solana tokens. By July 8, it became evident that AscendEx’s wallets were depleted, rendering further withdrawals impossible.
Social media silence preceded the collapse. The platform’s last tweet on June 23 promoted a token listing, while ZachXBT reported that a high-profile user escalated complaints to co-founder George (Jing) Cao and regulatory bodies. Despite assurances of ongoing dialogue, users noted unanswered support inquiries.
Blaming MiCA
Historically linked to a Lazarus Group hack in December 2021, AscendEx managed to resume operations after reimbursing compromised funds. In a June 6 notice, the exchange formally announced its July 1 closure, citing financial, operational, and regulatory challenges. Specific blame was placed on the EU’s Markets in Crypto-Assets (MiCA) framework, though critics argue the exchange mishandled compliance efforts and underestimated operational risks.
The company urged users to contact support@ascendex.com for dispute resolution, though many reported unresponsive communications. As authorities and regulators scrutinize exchange failures, AscendEx’s downfall underscores systemic vulnerabilities in crypto firms navigating evolving compliance frameworks.
