Zipmex Resumes Trade Withdrawals Amid Rescue Talks

July 26, 2022, 9:47 AM AEST - 2 weeks ago

Singapore-based crypto exchange Zipmex has resumed withdrawals from its trade wallet but transfers and deposits from its Z-Wallet will continue to be disabled pending the outcome of discussions with two of its partners.

One Party Offers Bailout Terms

In a July 24 Twitter post, Zipmex also revealed that it had received an offer regarding a potential rescue deal. One party had offered bailout terms in a confidential memorandum of understanding (MOU), though Zipmex neither identified the party nor specified whether the offer might be an investment or a buyout proposal:

On July 21, Zipmex halted all customer withdrawals on its platform, citing “financial difficulties” relating to two of its partners. The exchange disclosed a US$48 million exposure to Babel Finance and US$5 million to Celsius, two lenders that have defaulted on loans after accruing crippling losses in the crypto market.

In an official statement, Zipmex said it had already been “in discussion” with Babel Finance when news broke regarding the exchange pausing withdrawals last week.

Zipmex to ‘Write Off’ Celsius Loss

“These discussions are ongoing, and we are evaluating our options based on the outcomes of these negotiations. Our loan to Celsius Network was minimal and we intend to write off this loss against our own balance sheet.”

The statement concluded:

Zipmex is exploring all available channels. This includes capital raises and internal restructuring. For the moment, Zipmex continues to operate the Trade Wallet, NFT platform, and other products as normal.

Zipmex official statement

Native Token Down 40%

Zipmex operates in four countries – Singapore, Australia, Indonesia and Thailand – and offers both spot trading for cryptocurrencies and interest on deposits. The platform’s native token, ZMT, has declined by nearly 40 percent to US$0.343 from US$0.5637 on July 20, according to data from CoinMarketCap.

At the time of writing the exchange had seen nearly US$4 million in trading volume over the previous 24 hours, with almost 60 percent of all trades coming from ZMT.

Disclaimer: The content and views expressed in the articles are those of the original authors own and are not necessarily the views of Crypto News. We do actively check all our content for accuracy to help protect our readers. This article content and links to external third-parties is included for information and entertainment purposes. It is not financial advice. Please do your own research before participating.