Southeast Asian cryptocurrency exchange Zipmex announced today that it is stopping withdrawals until further notice.
Cryptocurrency Exchange Zipmex Suspends Its Customers’ Withdrawals, Citing Market Conditions
In a tweet, the company stated the details of their decision as follows:
“Due to a combination of circumstances beyond our control, including volatile market conditions and the consequent financial difficulties experienced by our key partners, we are suspending withdrawals until further notice to protect the integrity of our platform.”
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
This move of the stock market, bitcoin and on Ethereum It came after some companies had a hard time following the price drops.
Several other cryptocurrencies have similarly suspended withdrawals in the past weeks. At the end of June, crypto exchange CoinFLEX announced that it was halting all withdrawals due to “extreme market conditions and ongoing uncertainty regarding a counterparty.”
A short time later, Singapore-based loan platform Vauld took the same decision.
The firm said it was in a difficult situation due to market conditions as well as financial difficulties of its business partners. Since June 12, the platform has experienced approximately $198 million in customer withdrawals, triggered by the explosion of the TerraUSD stablecoin, Celsius’ decision to similarly halt withdrawals, and the woes of Three Arrows Capital.
However, Zipmex, the last crypto company to stop the withdrawals, has made a few more difficult decisions recently.
In June, it was learned that the company was in talks with Coinbase about a potential acquisition, but according to people close to the matter, the duo decided to make a strategic investment in Coinbase instead.
Another person close to the talks at the time said that Zipmex was in talks with investors to raise about $40 million on a $400 million valuation.
*Not investment advice.