Crypto exchange Zipmex suspends withdrawals

The company cites the financial difficulties of key business partners

21.07.2022 - 11:15

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What’s new? Asian cryptocurrency exchange Zipmex has suspended withdrawals. The company cited “volatile market conditions, and the resulting financial difficulties of our key business partners.” According to insiders, Zipmex was affected by the bankruptcy of Babel Finance, a lending platform, to which the exchange had provided a $100 million loan. Zipmex co-founder Marcus Lim has promised to hold a press conference on social media and answer questions from investors.

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 (@zipmex) July 20, 2022

What is known about Zipmex? The exchange was launched in September 2019 and is based in Singapore and Thailand. Zipmex has around 2 million active users. In March, the company raised $11 million in one of its funding rounds. There was also talk of buying the platform by the Coinbase exchange, but the deal did not go through. Zipmex has the native token called ZMT. According to CoinGecko, as of July 21, the asset is down by about 94% from its all-time high (ATH) and is trading at $0,33.

What happened before? Zipmex is far from the first platform to block users’ assets due to the downturn in the crypto market. One of the first to do so was the Celsius trading platform. On June 13, it suspended withdrawals, exchanges, and transfers. On June 24, CoinFLEX did the same. On July 1, US cryptocurrency broker Voyager Digital announced that it had suspended all transactions. Also on July 4, crypto platform Vauld announced that it would suspend payments to customers.

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