Zipmex, a cryptocurrency exchange, is the latest to halt customer withdrawals amid market turmoil, citing “volatile market conditions” as the reason. In a Tweet, the company confirmed that withdrawals would be suspended “until further notice.”
Zipmex, an Asian-based cryptocurrency exchange, has halted customer withdrawals, citing financial difficulties and volatile market conditions as the primary reasons for the decision. The move, according to the company, could help solidify the exchange’s integrity as the crypto market remains chaotic. Zipmex tweeted the update on Wednesday but hasn’t provided any further updates since.
According to the announcement: We would be suspending withdrawals until further notice due to a combination of causes beyond our control, including volatile market conditions and the resulting financial troubles of our key business partners.
Zipmex could be in trouble
Zipmex began operations in Southeast Asia in September 2019, primarily in Thailand and Singapore. The exchange claims to have grown a customer base of two million users since its inception and serves investors in Singapore, Indonesia, and Australia. While the withdrawal freeze is official, rumors suggest that the company may be in more trouble than it has revealed. According to reports, Zipmex may have exposure to crypto lender Babel Finance, and a $100 million loan default is possible. However, Zipmex CEO and co-founder Marcus Lim are said to have denied such rumors.
Zipmex is one of many companies that have suffered as a result of the cryptocurrency crash. Most crypto assets have lost value this year, exacerbated by events like TerraUSD’s crash and Three Arrows Capital’s liquidity crisis. Companies like Celsius, Voyager Digital, Vauld, and Babel Finance have had to opt for moves identical to Zipmex to deal with their own liquidity issues, halting withdrawals while they try to gather funds to repay their customers.
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