Singapore-based cryptocurrency exchange, Zipmex suspended withdrawals from its platforms on Wednesday, citing a “combination of circumstances” that were beyond its control.
In a Tweet by the crypto exchange, it highlighted volatile market conditions and the “resulting financial difficulties of our key business partners” that have pushed it to take such drastic action. Though the exchange did not provide further details about the move, it did not specify for how long this withdrawal suspension will be effective.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
Zipmex operates across several countries in the Asia Pacific region. However, it is known for its strong footing in Thailand. Additionally, it has a presence in Singapore, Australia and Indonesia.
The crypto exchange even attracted the attraction of Coinbase which was intended for an acquisition in the first quarter of this year. However, the deal fell through, and the American exchange ended up making an undisclosed ‘strategic investment’ into the Asian counterpart.
The investment came as a part of a Series B+ funding round of the crypto exchange that valued it at $400 million. Previously, the company raised $52 million earlier with backers like B Capital, V Ventures, MindWorks Capital and Master Ad.
After the collapse of the acquisition deal, Zipmex’s Co-Founder and CEO, Marcus Lim blamed the market conditions and highlighted that Coinbase followed the same strategy in several other markets as well.
Zipmex took the drastic move when Bitcoin and the overall cryptocurrency market were showing some signs of recovery.
Several other crypto platforms, mostly lenders, took similar steps after the latest crypto market crash. Celsius, which has now filed for bankruptcy, halted withdrawals in June, followed by Singapore-based Vauld which is considering restructuring.
This article was written by Arnab Shome at www.financemagnates.com.