Multiple users have reported problems withdrawing funds from cryptocurrency exchange AscendEX, which blockchain researcher ZachXBT said could be a sign of liquidity issues.
The X account, which uses the name Lorenzo Navarro Rodriguez, posted 4,196 on Tuesday. $USDT The account also said repeated calls to customer support went unanswered.
Over the next few days, at least five other users responded to the post reporting similar withdrawal issues.
On Friday, ZachXBT said in a Telegram post that the exchange lacks large reserves for tokens such as Ether (ETH). $USDT ($USDT) and Solana (SOL) indicate potential “liquidity issues” on the platform. ZachXBT called on the platform to respond to reports regarding delays in withdrawal requests and provide more clarity on why hot wallet liquidity is low.
Exchanges rely on liquid reserves of widely traded assets to process customer withdrawals. A shortage of these assets can lead to delayed withdrawals or, in severe cases, bankruptcy.
ZachXBT reports AscendEX liquidity and withdrawal issues via Telegram. Source: ZachXBT
AscendEX’s reserves are dominated by small-cap holdings
According to Arcam blockchain data viewed by Cointelegraph on Friday, wallets tagged with AscendEX held approximately $20.2 million in crypto assets. Wallets tagged Arkham were concentrated in small-cap assets and had relatively limited holdings in major cryptocurrencies.
AscendEx had the largest holding of $10 million worth of UNITE tokens, followed by $5.24 million worth of REUR, $2.9 million worth of ASD, $600,000 worth of Reservoir rUSD stablecoin, and other smaller tokens.
AscendEX tagged wallet, top token holdings. Source: Arkham
Cointelegraph reached out to AscendEX for comment but did not receive a response prior to publication.
Questions regarding exchange liquidity have become very sensitive in the crypto industry after the FTX collapse in 2022, where customer withdrawal requests revealed a multi-billion dollar shortfall, ultimately leading to the exchange’s bankruptcy.
The failure sparked a wave of customer exits across the industry, increased regulatory scrutiny and prompted many exchanges to publish margin evidence reports to reassure users.
