ZachXBT warns AscendEX users to report stuck funds to regulators

On-chain investigator ZachXBT has urged users with funds stuck on AscendEX to file reports with law enforcement and regulators in their countries. 

The update comes after earlier claims that the centralized exchange was delaying or failing to process user withdrawals.

The investigator said in a Telegram update that AscendEX had not posted on X for nine days since his earlier alert. He also said withdrawals were still not being processed while deposits remained available.

ZachXBT said he reviewed a case involving a large victim who allegedly received no response from AscendEX co-founder George Jing Cao. 

“If you have funds stuck I encourage you to file a report with law enforcement and regulators in your country,” he wrote.

AscendEX withdrawal concerns widen

The latest update follows ZachXBT’s earlier community alert, where he said he had observed multiple reports that AscendEX, formerly BitMax, was delaying withdrawals for days or weeks. Some users claimed withdrawals were not being processed at all.

As previously reported, ZachXBT warned that AscendEX may face liquidity issues after reviewing known exchange hot wallets on Arkham and TRM. He said the wallets appeared to lack large-cap assets such as ETH, USDT, USDC, and SOL.

The claim has not been confirmed by AscendEX. Exchange reserves can include cold wallets, third-party custody, or addresses that are not publicly labeled. Still, the lack of a clear public update has kept pressure on the platform.

ZachXBT questions deposits and hot wallets

ZachXBT also questioned AscendEX’s public messaging after the exchange promoted a token listing on X. In a June 26 reply to AscendEX, he asked why users were reporting delayed or incomplete withdrawals and why the exchange’s hot wallets appeared to lack liquid assets.

The exchange’s June 23 post said deposits, trading, and withdrawals were enabled for TokenNusa’s NST token. ZachXBT responded that users should not deposit funds to the exchange until the company addresses the questions.

Withdrawal delays often become a trust issue because users need transaction IDs to verify that funds have left an exchange. If no on-chain transaction appears, users depend on the platform for a clear timeline and proof that assets remain available.

Moreover, AscendEX was founded in 2018 by George Jing Cao and Ariel Ling. The exchange was previously known as BitMax before its rebrand. In December 2021, the platform was reportedly hacked for about $78 million, with the Lazarus Group later linked to the attack.

Exchange withdrawal delays stay in focus

The AscendEX case comes after other user complaints around centralized exchanges. As crypto.news reported, ZachXBT also flagged JuCoin over withdrawal delays and reserve concerns earlier in June. JuCoin blamed delays on upgrades and restructuring, while users questioned reserve quality.

The pattern shows why withdrawal processing remains one of the most important trust signals for centralized platforms. When users request withdrawals, they expect a transaction ID and a clear timeline. If funds leave the account balance but no blockchain transaction appears, users have limited ways to verify progress.