Crypto Exchange Zipmex Suspends Customer Withdrawals

Cryptocurrency exchange Zipmex becomes the latest exchange to halt customer withdrawals amid the market turmoil citing “volatile market conditions” as reasons for doing so. The company announced the update in a Tweet, confirming withdrawals would be suspended “until further notice.”

Asian-based crypto exchange Zipmex has paused customer withdrawals effective immediately naming financial difficulties and volatile market conditions as the primary reasons driving the decision. The company has said the move could help solidify the exchange’s integrity as mayhem in the crypto market continues. Zipmex shared the update on Wednesday via Twitter but has given no more updates since. The announcement reads,

Due to a combination of circumstances beyond our control including volatile market conditions, and the resulting financial difficulties of our key business partners, to maintain the integrity of our platform, we would be pausing withdrawals until further notice.

Zipmex May Be in Deep Waters

Zipmex launched in September 2019 and is based in Southeast Asia, primarily in Thailand and Singapore. Since its establishment, the exchange claims to have grown a customer base of two million users and serves investors across Singapore, Indonesia, and Australia. While the halt on withdrawals is official, rumours claim that the company might be in bigger trouble than it had let on. It has been reported that Zipmex might have exposure to crypto lender Babel Finance and default on a $100 million loan could be imminent. Zipmex CEO and co-founder Marcus Lim have supposedly however denied such rumours.

Zipmex joins a host of companies that have suffered in the wake of the crypto crash. Most crypto assets have plummeted in value over the course of the year, accelerated by events such as the collapse of TerraUSD and Three Arrows Capital’s liquidity crisis. As a result of the loss in value, companies such as Celsius, Voyager Digital, Vauld, and Babel Finance have had to make similar moves to Zipmex to deal with their own liquidity issues, halting withdrawals as they attempt to gather funds to repay their customers.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.