Zipmex suspends withdrawals amid ‘circumstances beyond its control’

Thai cryptocurrency exchange Zipmex has suspended withdrawals due to circumstances beyond the company’s control. The restrictions are in effect until further notice.

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

The exchange cited ‘volatile market conditions and the resulting financial difficulties of key business partners’.

In the summer of 2021 Zipmex raised $41 million from Bank of Ayudhya, Thailand’s fifth-largest bank by assets, media companies and venture funds.

In June 2022 The Block reported plans for Coinbase to acquire Zipmex. Ultimately, the parties agreed on a strategic investment, according to sources.

According to media reports, Zipmex planned to raise $40 million in a Series B+, valuing the company at $400 million.

CEO and co-founder Markus Lim, in comments to Cointelegraph, called Coinbase ‘an interesting partner’. He said the investments ‘make more sense at this stage’.

“The acquisition fell through due to market conditions. They backed out of many markets, such as Turkey and Latin America. Coinbase is an excellent strategic partner for the business,” said Lim.

Sources say Zipmex allegedly borrowed about the suspension of repayments and withdrawals from Babel Finance, one of Asia’s largest crypto lenders. In mid-June Babel Finance said about the suspension of repayments and withdrawals due to liquidity shortages.

Later, the company denied reports of insolvency. On July 19 it emerged that Babel Finance engaged lawyers for restructuring consultations.

Problems also hit the hedge fund Three Arrows Capital, crypto-lending platforms Celsius Network and Vauld.

A Cointelegraph source did not rule out that Zipmex could face similar difficulties. According to him, Babel “has not settled its default, and this is a $100 million hole”.

In response to the publication’s inquiry, Lim said the company “does not comment on rumours”.

Earlier, Galaxy Digital chief Mike Novogratz said that the fall in the crypto markets was driven by greed, ignorance and reckless risk management.

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