AscendEX Halts Operations, Pauses Automated Withdrawals

AscendEX halted operations on July 1 after it did not secure authorization under the EU Markets in Crypto-Assets (MiCA) framework. The exchange restricted activity so customers can no longer open accounts, deposit funds, trade, swap, stake or lend on the platform; exit functions remain available only while the service is accessible and not blocked by legal or insolvency rules.

On July 6 automated withdrawal processing was suspended after a counterparty did not complete an expected liquidity transaction. The platform moved to manual review of every withdrawal request, citing identity checks, sanctions and fraud screening, asset and balance reconciliation, network availability and potential legal or insolvency constraints. AscendEX warned that some withdrawal requests may be delayed, subject to extra checks or rejected, and that customers have no firm payment dates or guarantees of full recovery.

The company said it is assessing its financial position and that unresolved balances could become part of a formal insolvency or similar process if proceedings begin. The exchange has not published detailed financial figures, where customer assets are legally held, how many withdrawals are pending or the total value tied up.

Regulatory changes took effect on July 1 when the MiCA transition ended and the EU instructed unauthorized crypto service providers to stop onboarding EU clients while allowing only services needed for an orderly exit. AscendEX cited the lack of MiCA authorization alongside operational and financial pressures in explaining the shutdown.

An on-chain investigator raised questions about delayed or incomplete withdrawals on June 26 and advised users not to deposit; by July 6 multiple users reported suspended withdrawals. Public statements from the exchange have not confirmed the full scope of reported losses, and external claims about wallet balances and individual customer losses have not been independently verified.

AscendEX advised customers to stop sending deposits, review account balances, export transaction histories and retain copies of withdrawal submissions and any written complaints to preserve records. Customers can file claims with the platform, but the exchange has not provided a timeline for claim resolution or return of assets. With limited disclosure, customers and potential creditors must wait for further updates from AscendEX or any formal insolvency filings to learn how claims will be handled.