Multiple users report withdrawal issues on cryptocurrency exchange AscendEX. One account stated a 4,196 USDT withdrawal has been stuck since June 10, with customer support unresponsive. At least five other users reported similar problems.
Blockchain investigator ZachXBT, in a Telegram post, stated the exchange may be experiencing liquidity issues. He noted AscendEX appears to lack large-cap reserves for tokens like Ether, USDT, and Solana.
Exchanges need liquid reserves of major assets to process withdrawals. A shortage can cause delays or, in extreme cases, insolvency.
Blockchain data from Arkham showed AscendEX-tagged wallets held about $20.2 million in crypto. The holdings were concentrated in smaller-cap assets, with limited amounts of major cryptocurrencies. The largest holding was $10 million in UNITE tokens.
AscendEX has not responded to a request for comment. Concerns about exchange liquidity are particularly acute following the collapse of FTX in 2022, which exposed a massive shortfall and led to widespread industry scrutiny.