On-chain data points to potential liquidity crunch at AscendEX

The investigator’s analysis, conducted via Arkham and TRM, highlights a disconnect between standard exchange operations and the current state of AscendEX’s accessible reserves. While the platform’s internal help documentation promises transaction IDs within two hours of a request, users report that funds are disappearing from their balances without corresponding blockchain activity. This lack of transparency has fueled speculation regarding the firm's solvency.

AscendEX, founded in 2018 by George Jing Cao and Ariel Ling as BitMax, has yet to issue a formal response. The exchange previously suffered a $78 million security breach in 2021, an event linked to the Lazarus Group that complicates current user sentiment. Because exchange reserves often include cold storage or third-party custody solutions not visible on-chain, ZachXBT’s findings do not constitute definitive proof of insolvency. However, the absence of clear communication from the platform is keeping market pressure high as users demand verification of asset availability.