Bitcoin Has Yet to Hit Bottom, While Exchange AscendEX Has Already "Run Away"
On July 6, 2026, cryptocurrency exchange AscendEX officially announced it is ceasing operations, with a complete shutdown scheduled for July 1, 2026. The platform cited the full implementation of the EU's MiCA regulation alongside market, financial, and operational challenges. Users can no longer perform most functions, with accounts limited to withdrawal purposes only.
Prior to the announcement, on-chain investigator ZachXBT had issued warnings about significant withdrawal delays and a severe lack of high-liquidity assets (like ETH, USDT, SOL) in AscendEX's public hot wallets. Following the news, ZachXBT confirmed that the exchange lacks sufficient liquid assets to process multiple verified seven-figure withdrawal requests. AscendEX acknowledged that all withdrawals now require manual review, with no guarantees on processing times.
Chain analysis via Arkham Intelligence shows the platform's marked wallets hold minimal readily accessible funds, with most recent activity being small withdrawals. One highlighted wallet reportedly contains only $13.46 million in altcoins.
AscendEX, formerly known as BitMax, launched in 2018 and raised $50 million in a 2021 funding round. However, it suffered a major security breach in December 2021, losing approximately $77.7 million from hot wallets. The exchange compensated users but never fully recovered. The current crisis underscores the inherent risks of centralized exchanges, where poor liquidity management, regulatory pressure, and bear market conditions can trigger a collapse.
The event is seen as part of a broader industry shakeout, highlighting the importance for users to prioritize non-custodial wallets or exchanges with transparent proof-of-reserves.
Foresight News07/09 03:48
