The freezing of withdrawals at the Singaporean cryptocurrency exchange Zipmex is an indication that smaller companies in the ecosystem for digital assets are still having trouble obtaining sufficient liquidity.
Following in the footsteps of previous comments made by another Singapore-based company, Vauld, Zipmex, in a tweet sent out on Wednesday, the company said that the decision was taken due to unstable market circumstances and the financial difficulties of business partners.
In a second release, Zipmex said that it would be doing system maintenance and that customers would not be able to trade or conduct transactions during this time.
Having made withdrawals from its trade wallet possible, Zipmex announced in a statement to TechCrunch that it was “currently striving to restore trading.” But at the moment, transfers from ZWallet to trade wallets are not possible.
Since the crypto space’s “black swan occurrences,” Zipmex has been aggressively trying to find a solution for its outstanding assets while also recovering the bulk of its cash and assets that had previously been deposited with its deployment partners. No substantially negative effects on our operations occurred.
It noted that while its exposure to Celsius was modest, it wants to write it off against its own balance sheet while it is negotiating a resolution with Babel.
Additionally, the business said that it wished to “address certain inaccurate information” and listed its current exposure to cryptocurrency service providers Celsius and Babel at $48 million and $5 million, respectively.
For the time being, Zipmex is investigating all of its options, including reorganization, legal action, and financing. The business claimed that while other locations would only allow withdrawals, Zipmex Thailand was given access to deposits and withdrawals and will quickly re-enable trading. ZipUp is on hold.
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