AscendEX shuts down citing liquidity shortfall and MiCA regulatory hurdles

Singapore‑based cryptocurrency exchange AscendEX, formerly known as BitMax, announced it ceased operations on July 1 after depleting its liquidity pools. The firm blamed a combination of market pressure, operational challenges and the inability to secure authorization under the EU's Markets in Crypto‑Assets (MiCA) framework.

Investigations by blockchain analyst ZachXBT highlighted delayed or unprocessed user withdrawals and a lack of liquid assets in AscendEX’s hot wallets. The exchange had previously suffered a $78 million hack linked to the Lazarus Group in December 2021, but faced renewed scrutiny when users reported numerous withdrawal issues in June 2024. AscendEX urged affected customers to submit claims via support channels while indicating it would explore options to repay account holders.