AscendEX halts operations, warns some withdrawals may fail

AscendEX halted customer-facing services on July 1 after failing to secure authorization under the EU Markets in Crypto-Assets (MiCA) framework. In a July 6 notice the exchange said automated payout processing was paused after a counterparty failed to complete a planned liquidity transaction and that mounting financial pressure has affected operations.

Since July 1 users cannot open accounts, deposit funds, trade, swap, stake, or lend on the platform. AscendEX said the site should remain available only for withdrawals and other exit steps, unless legal or insolvency restrictions intervene.

Automated withdrawals were stopped on July 6. Each request now requires manual review, which the exchange lists as identity verification, sanctions and fraud screening, asset and balance reconciliation, network availability checks and any applicable legal or insolvency requirements. The company warned some requests could be delayed, face extra checks, or be rejected, and offered no timetable for when automated payouts might resume or whether customers will recover full balances.

The exchange has provided limited financial detail, so it is not possible to confirm whether it is insolvent. AscendEX said it is assessing its financial position and warned that unresolved customer balances could become part of a formal insolvency or similar proceeding if one is opened. The company has not identified which legal entity holds customer assets or where any insolvency case would be handled.

Customers were advised to stop depositing funds, verify account balances and complete KYC requirements. The exchange asked users to submit withdrawal requests only through the official platform flow, export transaction histories and retain records of withdrawal submissions and written complaints. The notice said those steps do not guarantee processing or payment.

Concerns about the platform began earlier. On June 26 an on-chain investigator raised questions about delayed or incomplete withdrawals and urged users not to deposit; on July 6 the investigator reported multiple users with suspended withdrawals. Those claims have not been independently verified.

AscendEX has not disclosed how many withdrawals are pending or the total value of assets affected. Customers can file claims with the exchange, but no timeline for claim resolution or for return of funds has been provided as the platform winds down operations.