Zipmex Halts Withdrawals Citing Market Volatility

Southeast Asian cryptocurrency exchange Zipmex has paused all withdrawals on its platform “until further notice” due to circumstances beyond its control, the company said in a tweet on 20 July.

According to the announcement, the move was made to “maintain” the integrity of the Zipmex platform, and was caused by a “combination of circumstances” beyond the company’s control. The exchange noted that the current volatility of the crypto market was one of the main reasons behind the decision, as it resulted in financial difficulties to its “key business partners”.

Founded in 2018, the Zipmex exchange — which has offices in Thailand, Indonesia, Singapore, and Australia — offered its customers a variety of services, including crypto spot trading and interest-bearing accounts. On its website, the company claims to offer its users up to 10% yearly returns on funds deposited to its platforms.

The Southeast Asian exchange had reportedly received an acquisition offer from Coinbase sometime in the first quarter of 2022, but the deal fell through in March. Instead of a full acquisition, Coinbase decided to make a strategic investment into the company, though the amount remains unknown. Prior to pausing withdrawals, Zipmex was also looking to organize a Series B+ round, with hopes of raising $40 million and increasing its valuation to $400 million, though that seems unlikely now.

The exchange has joined a growing list of crypto-related companies that have decided to pause withdrawals in recent weeks. The same move was made by cryptocurrency exchange CoinFLEX on 23 June, citing “extreme market conditions”. Crypto lenders Babel Finance and Celsius Network had also taken similar steps, though the latter has already filed for Chapter 11 bankruptcy protection.