Zipmex Exchange Halts User Withdrawals Citing ‘Circumstances Beyond Our Control’

July 22, 2022, 10:07 AM AEST - 3 weeks ago

Southeast Asian digital assets exchange Zipmex has paused customer withdrawals due to “circumstances beyond our control and the resulting financial difficulties of our key business partners”:

Withdrawals ‘Expected to Resume’

With offices in Australia, Indonesia and Thailand, Zipmex describes itself as Asia’s leading cryptocurrency exchange, offering users a long list of crypto products and services. It has extended its maintenance period for Trade Wallet until July 22, the exchange tweeted. Withdrawals are expected to resume afterwards.

Marcus Lim, founder of Zipmex, denied rumours of the firm facing financial turbulence as a result of the crypto market crash and after Coinbase pulled out from its acquisition plan on June 9. He subsequently penned a letter to customers to apprise them of the situation:

Zipmex letter to customers. Source: Zipmex

While Coinbase didn’t acquire the exchange, it poured in an undisclosed amount of strategic financing after the acquisition deal fell through. In August last year, Zipmex separately raised over US$40 million.

Crypto Contagion Spreads

Zipmex is the latest of the numerous crypto-focused companies that have had to suspend withdrawals and other services amid current crypto market turmoil, causing contagion across the industry.

Two weeks ago, Crypto News Australia reported that Singaporean crypto lender Vauld had frozen withdrawals, trading and deposits on its platform.

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