Crypto exchange Zipmex freezes withdrawals

Singapore-based cryptocurrency exchange Zipmex became the latest firm to block customers from withdrawing their tokens, citing volatile market conditions and financial difficulties of its partners, reportedly Babel Finance.

See related article: Celsius says users can settle for cash at a discount or go long on crypto

Fast facts

• “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,” the exchange said on Wednesday on its verified Twitter handle.

• Zipmex reportedly lost around US$100 million that it lent to Babel Finance after the Hong Kong-based crypto financial service provider halted withdrawals in June, various media reports citing industry sources said.

• Zipmex and Babel Finance did not respond to Forkast’s request for a comment at the time of publication.

• The so-called crypto contagion that snowballed with the insolvency of Three Arrows Capital (3AC) continues to impact the global digital asset industry, with Celsius, Voyager Digital, Vauld and several others announcing liquidity issues.

• The Southeast Asian exchange raised over US$52 million in its series B+ round from investors including Krungsri Finnovate, the venture capital subsidiary of Thailand’s Bank of Ayudhya.

• Founded in 2018, Zipmex operates crypto trading and investment services in Thailand, Indonesia, Singapore and Australia.

See related article: Three Arrows, Voyager failures raise questions of who is next in crypto fall from grace