AscendEX Halts Platform Services After RIBK Restructuring Deal Collapses

AscendEX said it has temporarily suspended platform operations and user withdrawals after a planned capital restructuring failed to close, leaving the company without the funding it expected to address legacy financial pressures and support ongoing operations. In a statement attributed to AscendEX, the exchange said its management team and shareholders remain in place and stressed the pause is not a decision to abandon the platform. AscendEX said user account records remain intact and that the company continues to control and safeguard its remaining digital assets. Operations were suspended effective July 1, 2026. The company outlined the background to the decision and why the proposed acquisition and restructuring by The Royal Investment Bank of Kelantan Inc. (RIBK, also known as RIB) did not proceed. Legacy pressures tied to 2021 security breach AscendEX said it suffered a cyberattack in December 2021 that led to the theft of certain digital assets. The company described the event as a criminal attack targeting both AscendEX and its users, said it reported the matter to authorities, filed a formal criminal complaint, and has continued efforts to trace and recover the stolen assets. Based on market prices at the time, the incident resulted in significant losses, AscendEX said, adding it did not pass those losses on to users and continued to operate and process withdrawals. The company said the incident nevertheless materially weakened its overall financial position, prompting management to pursue a capital restructuring. Timeline of the RIBK transaction AscendEX said it and its shareholders entered a legally binding acquisition and capital restructuring agreement with RIBK in September 2025, followed by a legally binding financing arrangement in October 2025 and a phased capital contribution framework agreement in June 2026. The company said extended negotiations and complex due diligence contributed to the lengthy process. AscendEX said RIBK provided transaction documents and written communications asserting the deal had high-level institutional backing, including support from members of a royal family. The company said it relied on those representations when expecting the transaction to complete. It also said the June 2026 framework agreement was signed by RIBK management as well as other individuals signing with authorization, including parties associated with the royal family. AscendEX says RIBK did not perform AscendEX said RIBK failed to meet key obligations, including failing to pay amounts due at signing, failing to fund an escrow account as agreed, failing to provide promised financing, and failing to complete the acquisition. AscendEX said it has not received any funds due under the transaction. The company said it received written confirmations over several months that funds were imminent, with assurances continuing until shortly before the operational suspension. AscendEX said it continued to maintain platform services, incurred significant transaction and integration costs, and gave up other potential acquisition and restructuring opportunities due to exclusivity arrangements, only for the promised funds not to arrive. Reason for the halt AscendEX said RIBK's failure to inject committed funds prevented the planned restructuring and directly led to the suspension of operations. The company emphasized that the RIBK transaction did not cause its historical financial difficulties, which it attributed to the December 2021 security incident. The RIBK deal, it said, was intended to resolve those legacy issues. Demands, legal actions, and regulatory reporting AscendEX said it is formally requesting RIBK and all signatories to the relevant agreements and framework documents to clarify the circumstances and honor their written commitments as represented at signing. The company said it reserves the right to pursue all contractual and legal remedies against any party liable under the documents. AscendEX said it has terminated the primary transaction agreement due to what it called a material default and has initiated related contractual and legal proceedings, including dispute resolution. It also said it reserves the right to report activities related to the transaction to regulators and law enforcement in Malaysia and other applicable jurisdictions. The company said it will not publicly comment beyond what can be substantiated by formal agreements, company records, and written communications, citing the potential impact on dispute resolution, regulatory proceedings, investigations, criminal cases, and asset recovery. What comes next for users AscendEX said it is assessing its overall situation and that user account records and remaining digital assets remain under company control. Management said it is pursuing two tracks: continuing discussions with potential investors and restructuring partners to secure a new rescue or restructuring transaction; and, if a viable plan cannot be completed within a reasonable timeframe, considering bankruptcy or restructuring proceedings. AscendEX said user balances remain fully recorded in its system. During the withdrawal suspension, it said it will further clarify its financial position and a subsequent distribution plan. The company said it cannot provide a timeline for restoring withdrawals and cannot guarantee full repayment of all user claims. It said the final outcome will depend on ongoing restructuring negotiations; if restructuring fails, claims will be handled under applicable bankruptcy procedures. AscendEX said it will provide official updates on restructuring progress, plans for resolving user claims, and channels for users to submit questions and documentation. The company said its next announcement will be published through official channels no later than September 6, 2026. Fraud warning AscendEX urged users to rely only on official channels for information and warned of impersonators requesting payments, private keys, passwords, or additional deposits to process withdrawals, verification, or claims. The company said such requests should be treated as fraud and reported via official channels, and it is not liable for losses caused by third-party fraud. Source: AscendEX. Dated: August 5, 2026.