Southeast Asian crypto exchange Zipmex stops withdrawals

Zipmex, a Thai-based crypto exchange, has actually halted withdrawals citing a combination of “scenarios. The Southeast Asian exchange has stopped withdrawals until additional notice.

A tweet by the exchange stated: Due to a mix of scenarios beyond our control including unpredictable market problems, and the resulting economic problems of our essential company partners, to preserve the integrity of our system, we would certainly be pausing withdrawals till more notification.”

Prior to the stopping of withdrawals, Cointelegraph had actually issued records that Zipmex can be in difficulty however the crypto exchange ended up rejecting that as just rumors. This followed an unsuccessful procurement of Zipmex by Coinbase.

Failed procurement by Coinbase

Responding to Cointelegraph, the CEO and also co-founder of Zipmex, Marcus Lim, claimed:

“While Coinbase is an intriguing companion, a capitalist makes more feeling at this phase.”

Lim went on to explain the reason for the failed procurement claiming:

“The procurement fell through due to market problems. They& ve pulled out in lots of nations around the world such as Turkey and in Latin America. Coinbase is an excellent calculated partner to the business.”

Coinbase had actually made a deal to obtain Zipmex in the very first quarter of 2022 however the acquisition strategy fell on June 9. Coinbase went in advance to make a critical financial investment into the Thai-based crypto exchange.

Other than stopping withdrawals, there are records that Zipmex is preparing for a Series B+ that might value it at $400 million.

By August 2021, Zipmex had actually reached a 200,000 individual base with over $1 billion in gross transaction volume considering that it was released in 2019.

Zipmex difficulties

According to sources some funds, about $100 million from Zipmex were provided to Hong Kong-based asset manager Babel Finance with the aim of creating return. However, there is a risk of default since Babel halted withdrawals in June as a result of uncommon liquidity stress resulting from the crypto market crisis and hasn& t resumed the withdrawals.

Though not verified, there are worries that Zipmex might go the means of Celsius, which has actually currently filed for personal bankruptcy looking for economic restructuring.

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