Woofun AI reports that cryptocurrency exchange AscendEX is facing mounting withdrawal complaints after blockchain investigator ZachXBT highlighted potential liquidity failures involving major assets. An X account under the name Lorenzo Navarro Rodriguez stated on Tuesday that a 4,196 USDT withdrawal remained stuck in an "initiating" state since June 10 with no response from customer support. At least five other users subsequently replied to the post confirming similar delays in accessing their funds. On Friday, ZachXBT posted on Telegram that the exchange lacked sufficient large-cap reserves for tokens such as Ether (ETH), USDT (USDT) and Solana (SOL), signaling serious liquidity issues. The investigator urged the platform to address these delayed requests and explain why its hot wallets maintain such low liquidity levels.

Exchanges depend on liquid reserves of widely traded assets to process customer withdrawals efficiently. A shortage of these specific assets can trigger delayed transactions or, in severe scenarios, lead to total insolvency. Blockchain data on Arkham revealed that AscendEX-tagged wallets held approximately $20.2 million in crypto assets.

Woofun AI data shows these holdings were heavily concentrated in smaller-cap assets rather than major cryptocurrencies. The largest position was $10 million in UNITE tokens, followed by $5.24 million in REUR, $2.9 million in ASD, and $600,000 in Reservoir rUSD stablecoins.

Liquidity concerns are particularly sensitive in the crypto industry following the 2022 collapse of FTX. That failure exposed a multibillion-dollar shortfall when customers attempted withdrawals, ultimately forcing the exchange into bankruptcy. The event triggered a wave of industry-wide withdrawals, intensified regulatory scrutiny, and compelled many platforms to publish proof-of-reserves reports. This current situation marks a significant recurrence of the volatility that has plagued the sector since that historic failure.