Famous Bitcoin exchange Zipmex has become the latest crypto startup to suspend withdrawals. Recently, many organizations from DeFi lending platforms to cryptocurrency exchanges have suspended transactions. The main reason behind these decisions of the companies is the liquidity shortage and the risk of bankruptcy. He put forward a similar reason at Zipmex. The exchange announced that it has stopped customer withdrawals due to “volatile market conditions”. Here are the details…
Bitcoin exchange suspends withdrawals
Zipmex announced the update in a tweet Wednesday. Accordingly, it announced that customers’ withdrawals will be paused “until further notice.” It seems that Zipmex has joined the latest cryptocurrency companies to resort to drastic measures to deal with the market downturn. The announcement of the Thailand-based Bitcoin exchange was as follows:
A combination of circumstances beyond our control, including volatile market conditions. In addition, our key business partners were affected by the resulting financial difficulties. Therefore, we will pause customers’ withdrawals until further notice. We do this to protect the integrity of Zipmex.”
The CEO denied
The Bitcoin exchange has suspended withdrawals, as we mentioned earlier. However, the CEO of the exchange, Marcus Lim, denied the rumors of financial trouble just before the said announcement. The allegations emerged after Coinbase’s plans to acquire Zipmex failed. Coinbase took action to acquire Zipmex in the first quarter of 2022. On June 9, the acquisition was unsuccessful. Instead, Coinbase chose to make a “strategic investment” in the Bitcoin exchange. The amount of the said investment was not disclosed. The Zipmex CEO attributed this failed acquisition attempt to a bear market. According to him, the low prices in the market caused Coinbase to give up. Also, according to the CEO, the issue had nothing to do with Zipmex’s financial troubles.
Zipmex is working on a $400 million Series B+ hike. It is also known that Zipmex has compliant operations in Thailand, Indonesia, Singapore and Australia. In August 2021, Zipmex’s user base reached 200,000. However, the exchange has reported over $1 billion in gross trading volume since its launch in late 2019. But a source close to the exchange explained that Zipmex could run into trouble before customers freeze their funds. According to the source, who chose to remain anonymous, it’s possible that Zipmex is next in Celsius. As we reported on Kriptokoin.com, Celsius suspended its users’ withdrawals last month. The famous crypto lending platform recently filed for bankruptcy in the US. Zipmex attracted the attention of the market as the last link in the chain of companies that suspended their transactions.
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