AscendEX shuts down, users face uncertain withdrawals

The cryptocurrency exchange AscendEX has ceased operations, warning users they may not recover their full account balances as the platform enters a manual withdrawal process. The exchange, which halted services on July 1, cited regulatory pressure from the European Union's new Markets in Crypto-Assets (MiCA) framework and a failed strategic liquidity deal as primary reasons for its shutdown.

In a notice dated July 6, the company stated it does not hold the authorization required to operate under MiCA, which recently entered full enforcement. This regulatory hurdle, combined with financial and operational pressures, led to the decision to wind down. The exchange specifically noted that a planned strategic transaction intended to provide liquidity for growth collapsed when the counterparty failed to perform, exacerbating its financial strain.

Account access is now restricted to offboarding activities. Automated withdrawals have been suspended, and all withdrawal requests are subject to a mandatory manual review. The exchange warned that this process could cause significant delays, require users to submit additional information, or result in requests not being processed at all. It...