Zipmex Opens Limited Withdrawals

Cryptocurrency exchange Zipmex has partially restored its services, and now allows some accounts to withdraw their assets from the platform, the company said via Twitter on 22 July.

According to the announcement, deposits and withdrawals will be opened only for Trade Wallets — where users store their assets for trading on the platform — though trading will remain disabled “until further notice”. Zipmex’s Z Wallet — which is where users deposit assets to receive rewards and bonuses — will remain closed, though the exchange noted it was exploring all available channels to remedy the situation.

Southeast Asian crypto exchange Zipmex paused all deposits, withdrawals, and trading on its platform on 20 July, citing a “combination of circumstances” beyond their control. At the time, the company noted that the current volatility of the crypto market, and the resulting financial difficulties of its “key business partners”, was one of the main reasons behind the decision.

Only a day after, Thailand’s Security and Exchange Commission demanded the exchange clarify its decision to freeze customer withdrawals, and also disclose the value of its customer assets under control. The regulator also required to know if Zipmex had any ties to troubled crypto lending platforms Babel Finance and Celsius.

The exchange quickly issued an official statement, which revealed it had a $5 million exposure to Celsius, and a $48 million exposure to Babel Finance. Zipmex however noted that it was currently working with Babel to resolve the situation effectively.