Update: In a statement sent to TechCrunch, Zipmex said it has enabled withdrawals from its trade wallet and "are actively working to resume trading." But transfers from ZWallet to trade wallets are currently not available.
"Ever since the black swan events surrounding the crypto space Zipmex has retrieved the majority of our funds and assets that were historically deposited with our deployment partners and have been actively working to resolve the situation for our remaining outstanding assets. There were no materially adverse impacts to our operations."
The company also said it wanted to "correct some misleading information" and outlined its current exposure to crypto providers Babel and Celsius: $48 million and $5 million respectively.
It added that it is in discussions with Babel to resolve the situation and since its exposure to Celsius was minimal, it intends to write it off against its own balance sheet.
"For now, Zipmex is exploring all available channels including fundraising, legal action and restructuring." Zipmex Thailand was enabled deposits and withdrawals, and will re-enable trade as soon as possible, the company added, while other regions will only enable withdrawals. ZipUp is paused.
"The SEC is well informed of the situation and we are cooperating fully with them," the company added.
Original article below:
The Singapore-headquartered company cited a “combination of circumstances beyond our control including volatile market conditions, and the resulting financial difficulties of our key business partners.”
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
Zipmex is not the only crypto exchange that has run into difficulties amid a global sell-off in crypto markets. Crypto unicorn Babel suspended withdrawals in June, while Celsius, one of crypto’s biggest lenders, filed for bankruptcy a week ago.
Vauld, another Singapore-based crypto platform, suspended withdrawals, trading and deposits due to financial challenges earlier this month.
TechCrunch has reached out to Zipmex for comment and will update this story if we hear back from them. Reuters reports that in a livestream on Wednesday evening, Zipmex Thailand CEO Akalarp Yimwilai said its office’s difficulties were because of problems at Singapore-based Zipmex Global, whose partners Babel Finance and Celsius, were experiencing liquidity problems.