AscendEX announced its shutdown on July 1 and said it lacks authorization under the EU’s Markets in Crypto‑Assets framework, leaving customers uncertain about fund recovery. EU rules that took effect on July 1 require crypto service providers to obtain a MiCA licence; the deadline has prompted a wave of unlicensed exchanges to cease operations. AscendEX cited financial and operational pressures, including a failed strategic transaction intended to secure liquidity, as reasons for the closure. Automated withdrawal processing was paused on July 6, and all withdrawal requests now require manual review of identity, sanctions, fraud, balance reconciliation, network status and any legal or insolvency considerations. The exchange warned that some withdrawals may be delayed, face additional checks or be rejected, and that customers have no firm payment date or guarantee of full repayment. It also noted that a counterparty failed to complete a transaction that would have provided liquidity, and that it is assessing its financial position, with unresolved balances potentially subject to formal insolvency proceedings. Information about the legal entity that holds customer assets and the jurisdiction for any insolvency case has not been disclosed, and the company has not revealed the number of pending withdrawals, the amount of assets at stake, or a timeline for further communications. European Securities and Markets Authority (ESMA) instructed unauthorised providers to stop onboarding EU clients after the MiCA transition, allowing only services needed for an orderly exit. Withdrawal concerns had been noted earlier; on June 26, on‑chain analyst ZachXBT highlighted reports of delayed or incomplete withdrawals and advised users not to deposit, and on July 6 he said multiple users experienced suspended withdrawals, though his claims about specific balances and losses have not been independently verified. Customers are advised to stop sending new deposits, ensure their know‑your‑customer information is complete, export transaction histories and retain documentation of withdrawal submissions, though these steps do not ensure processing or payment. Uncertainty about when withdrawals will resume and whether the exchange can fully repay its users remains unresolved.