Crypto exchange Zipmex halts withdrawals citing market volatility

Zipmex has become the latest cryptocurrency platform to halt customer withdrawals.

In a tweet, the company cited volatile market conditions and the “resulting financial difficulties of our key business partners” as reasons behind the halt.

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

However, the firm did not identify the business partners facing financial turmoil.

Zipmex also did not provide any information regarding when users can expect withdrawals to resume.

Zipmex’s finances

Founded in 2018, crypto exchange Zipmex offers services across Southeast Asia including Singapore, Thailand, and Indonesia, as well as Australia. Although headquartered in Singapore, the exchange is not licensed by the Monetary Authority of Singapore (MAS).

In August 2021, Zipmex raised $41 million in a Series B funding round. Investors included Krungsri Finnovate, the venture capital arm of the Bank of Ayudhya, Thailand’s fifth-largest bank by assets and a subsidiary of Japan’s Mitsubishi UFJ Financial Group (MUFG), Thai-listed multimedia companies Plan B Media and Master Ad (MACO). At the time, Zipmex said that the firm will reach $1 billion in valuation in the months to come.

In September 2021, Zipmex raised another $11 million as part of its Series B round. As of June 2022, Coinbase had agreed to a strategic investment in Zipmex and the firm was working on a Series B+ round at a valuation of $400 million.

A freezing trend

Since last month, several crypto platforms have barred customer withdrawals citing market volatility. This includes Celsius Network and Voyager Digital before both firms filed for bankruptcy.

Babel Finance and CoinFLEX also paused withdrawals although CoinFLEX has since resumed withdrawals with a 10% limit.