AscendEX Team

AscendEX Statement on the Suspension of Operations and the Failure of the RIBK(RIB) Transaction

AscendEX has suspended normal platform operations and customer withdrawals with effect from July 1st 2026. This statement explains the circumstances leading to the suspension, the failure of the proposed transaction with The Royal Investment Bank of Kelantan Inc. and the steps now being taken.

1. Operational and custody position

Normal platform operations and customer withdrawals are suspended. Customer account records are intact and the company’s remaining digital assets are preserved and under the company’s control. The suspension followed the failure of a recapitalization transaction on which the company had relied to address its legacy financial position and provide the resources required to continue operations. Ascendex team and owners have not dissapeared, nor the suspension reflect a decision to walk away from the platform.

2. The December 2021 security incident

In December 2021, AscendEX was the victim of an external security attack in which digital assets were stolen from the platform. The attack was a crime committed against the company and its users. AscendEX reported the incident to the competent authorities, filed a criminal complaint and began efforts to trace and recover the stolen assets. Those efforts continue.

The company’s records a substantial loss, based on the values prevailing at the time of the incident.

AscendEX absorbed the loss rather than passing it to users. Following the theft, the company operated and continued to honor customer withdrawals, however Ascendex financial situation suffered. Against this background, the management managed to further a recapitalization. This was the principal issue that the proposed acquisition and recapitalization by The Royal Investment Bank of Kelantan Inc. was intended to resolve.

3. The RIBK transaction

In September 2025, AscendEX and its shareholders entered into binding agreements with The Royal Investment Bank of Kelantan Inc. (“RIBK”)( Also known as RIB） for the acquisition and recapitalization of the AscendEX business. Those agreements were followed in October 2025 by further binding financing arrangements and, in June 2026, by a framework agreement providing for staged funding. It took us time because the negotiations were extended, and the due dilligence a thorough process.

In the transaction documentation and written communications received by AscendEX, it was represented that the proposed acquisition and recapitalization had received high-level institutional support on buyer’s side, including the Royal Family. AscendEX relied on those written representations and assurances, in view of the high trustwortiness of members of the Royal Family involved.

The June 2026 framework agreement was executed not only by officers of RIBK, but also by additional signatories acting in stated representative and consent-giving capacities, also in relationship with the Royal Family. AscendEX relied on the full slate of signatures and the capacities in which those persons signed and represented that the acquisition and recapitalization will take place.

4. RIBK’s failure to perform

RIBK did not perform its principal obligations under the transaction:

1. 1. It did not make the payment due on signing.
2. 2. It did not fund the agreed escrow.
3. 3. It did not advance the financing it had committed to provide for the Company.
4. 4. It did not complete the acquisition.
5. 5. No amount was advanced to AscendEX under the transaction, as assumed and expected.

Over a period of several months, AscendEX received repeated written representations that the committed funding was imminent. Those assurances continued until approximately prior to platform operations being suspended.

AscendEX’s reliance was based on executed agreements and the written representations described above. In reliance on them, AscendEX performed its own obligations under the transaction, maintained the platform and customer operations, incurred substantial transaction and integration costs, and declined to pursue alternative purchasers and recapitalization opportunities that had otherwise been available.

AscendEX was therefore held to an exclusive process while forgoing other options, and was deprived of both the promised funding and the opportunity to pursue an alternative transaction. The resulting prejudice increased with each further month during which AscendEX was assured that funding was imminent.

5. Effect of the failed transaction

The failure of the committed funding removed AscendEX’s recapitalization pathway and directly led to the suspension of operations. The RIBK transaction did not create the legacy financial position resulting from the December 2021 security incident; it was intended to resolve it. Its failure left AscendEX without the resources the transaction was expected to provide.

6. Call on RIBK and the signatories

AscendEX calls on RIBK and every signatory to the executed agreements and framework, in the capacities in which they signed, to clarify their position and honor in full the commitments made in writing. AscendEX reserves and will pursue its available contractual and legal remedies against any party bearing responsibility under the executed instruments.

7. Legal and regulatory position

AscendEX has terminated the principal agreement for material breach and is pursuing its contractual and legal remedies, including dispute resolution. AscendEX reserves the right to refer conduct connected with the transaction to the competent supervisory and law-enforcement authorities in Malaysia or elsewhere.

AscendEX will not comment publicly beyond matters supported by executed documents, company records and documented communications, and will not disclose information that could prejudice dispute resolution, regulatory proceedings, investigations, criminal complaints or asset-recovery efforts.

8. Current status and next steps

Customer account records and the company’s remaining digital assets are currently blocked while the current position is being assessed. Management is pursuing two paths in parallel: continuing discussions with potential investors and restructuring partners regarding a possible rescue or recapitalization transaction; and contemplating a potential insolvency or restructuring process if a viable rescue cannot be completed in a reasonable time, given the context.

Customer balances remain recorded as related to AscendEX users; the suspension of withdrawals plans to have a clear picture of funds allocation. AscendEX cannot currently provide a timetable for withdrawals or promise that all customer claims will be repaid in full. The treatment of customer claims will depend on the outcome of the ongoing rescue discussions and, if a rescue cannot be completed, the requirements of the applicable legal insolvency process.

AscendEX will provide further updates regarding the restructuring process, the treatment of customer claims and the official channels through which users may submit questions and supporting documentation. AscendEX will publish its next update no later than September 6, 2026, through the official channel identified below.

9. Warning concerning fraudulent communications

Users should rely only on official AscendEX communications issued through official AscendEX channels. Users should remain alert to impersonators and to any person requesting payments, private keys, passwords or additional deposits in connection with withdrawals, account reviews or customer claims. Any such request should be treated as fraudulent and might be reported through the same channel, although Ascendex does not assume any responsibility in relation to solving such situations.

AscendEX Management

5 August 2026

Further to the prior notice regarding the cessation of AscendEX operations, AscendEX confirms that it is securely preserving user account data, account records, transaction-history information and related operational records required for the wind-down process.

This preservation process is intended to maintain the integrity of user records, support account review, support transaction-history access where available, enable customer-support handling, and preserve information required for legal, compliance, regulatory, accounting, security and operational purposes.

Users do not need to take any immediate action in relation to this update. Please wait for further official updates, which will be provided only through this official status page. Please do not rely on messages from unofficial sources or any person claiming to expedite account review, withdrawal, recovery or data access outside official AscendEX channels. AscendEX will not provide account-specific instructions through individual staff, founders, private messages or unofficial social-media channels.

This update does not change any previously communicated wind-down steps, account restrictions, verification requirements or available account functions. Users should continue to follow the instructions shown on the official status page and, where applicable, in their account dashboard.

AscendEX Team

To our retail account holders

Re: Cessation of operations and processing of withdrawals

Dear Customer,

We are writing to you about two related matters: (i) the cessation of AscendEX’s operations; and (ii) how withdrawal requests will be processed during the wind-down.

1. Cessation of operations

AscendEX ceased operations with effect from 1 July 2026. This decision reflects a number of factors, including regulatory developments such as the EU Markets in Crypto-Assets Regulation (MiCA), which took full effect on 1 July 2026 and under which AscendEX does not hold authorization, as well as broader regulatory, financial and operational considerations affecting the platform.

Clients are no longer able to open accounts, deposit assets, trade, swap, stake, lend, participate in referral or promotional campaigns or otherwise access crypto-asset services. Subject to platform availability and any applicable legal or insolvency-related constraints, account access is expected to remain available only for limited offboarding purposes, including withdrawal requests, KYC updates, complaints, support and transaction-history exports.

2. Withdrawals and manual review

Withdrawal processing is separate from the licensing position above. As of July 6, 2026, all withdrawal requests are subject to manual review before processing, and automated withdrawals are paused. We believe this is the most responsible step to handle requests in an orderly and consistent way and to treat account holders fairly.

Withdrawal requests will be reviewed and processed only where permitted by applicable legal, technical and operational requirements, including account verification, KYC/AML/CFT and sanctions checks, fraud-prevention checks, asset and balance reconciliation, network availability and any applicable legal or insolvency-related requirements.

Withdrawals may therefore be delayed, may require additional information, or may not be processed while the review continues. We are not in a position to give assurances about timing or amounts today. No account holder or group of account holders is being given priority outside the documented review process.

3. What you should do now

Please:

1. do not make any new deposits;
2. log in to your account and review your balances;
3. ensure that your KYC information is complete and up to date;
4. submit withdrawal requests only through the official platform withdrawal flow;
5. download your transaction history for your own records, including tax reporting where applicable; and
6. send questions and complaints only through support@ascendex.com .

4. Questions and complaints

Please send any questions or complaints in writing to support@ascendex.com . So that we can respond consistently and keep our records complete, please use that channel rather than contacting individual members of staff.

5. Further updates

We understand that this news is difficult. We relied on an agreed strategic transaction that was to provide liquidity to grow the platform, and the counterparty did not perform; wider crypto market conditions have added further pressure. We are currently assessing the company’s financial position and considering what options, if any, may be available in relation to account holders.

We expect to write to you again with further detail on the position and on next steps as and when we are in a position to do so. Nothing in this notice is intended to waive or limit any rights you may have under applicable law. If any formal insolvency or similar process is commenced, the treatment of unresolved balances or claims may be subject to that process and to further communications.

Yours faithfully,

AscendEX Team