AscendEX withdrawal complaints mount as ZachXBT questions reserves

AscendEX experienced a surge in user complaints regarding delayed withdrawals starting on May 21, 2024, following an inquiry by blockchain investigator ZachXBT into the exchange's reserves. ZachXBT, known for uncovering financial irregularities in the crypto space, posted on X (formerly Twitter) on May 20, 2024, highlighting "suspicious activity" and questioning the solvency of AscendEX. He specifically pointed to a significant outflow of Tether (USDT) from AscendEX to Binance, totaling approximately $30 million, which he suggested could indicate a liquidity crunch. In response to mounting user concerns and ZachXBT's allegations, AscendEX issued a statement on May 22, 2024, acknowledging "technical issues" affecting withdrawals and assuring users that operations were being restored. The exchange stated that it was working diligently to resolve the situation and that customer funds remained secure. However, as of May 23, 2024, some users continued to report that their withdrawal requests had not been processed, fueling further speculation about the exchange's financial health. The incident has drawn comparisons to past crypto exchange collapses where withdrawal suspensions preceded insolvency.