Cryptocurrency exchange Zipmex has resumed withdrawals from its trading wallet after a two-day suspension, but said transfers, deposits and trades will remain disabled from its Z Wallet.
In an announcement on Friday, Zipmex said its Thailand-based users would be able to make withdrawals from their trading wallet, and the feature is expected to be “reactivated this afternoon” for customers in other countries. The cryptocurrency exchange had disabled withdrawals since Wednesday, citing a “combination of circumstances” beyond its control, including recent market volatility.
“Since the black swan events surrounding the cryptocurrency space, Zipmex has recovered most of our funds and assets that were historically deposited with our deployment partners and have been actively working to resolve the remaining outstanding asset situation,” Zipmex said. “There were no material adverse impacts to our operations.”
Important Announcement
Maintenance on the Trade Wallet has ended. Withdrawals for your Trade Wallet are now enabled as of 22 July 2022 at 18:00 (GMT+7).
Transfer from Z Wallet, deposit and trade will continue to be disabled until further notice. pic.twitter.com/voMINELlH5
— ZIPMEX (@zipmex) July 22, 2022
Cointelegraph reported on Wednesday that according to a source close to the exchange, Zipmex had roughly $100 million in exposure to crypto lender Babel Finance, which was at risk of default. The Hong Kong-based firm halted withdrawals in June, citing “unusual liquidity pressures.”
However, according to Zipmex, the platform only has $48 million of exposure with Babel and $5 million with Celsius, which could also face insolvency. Zipmex said it was in talks with Babel to resolve the situation and was “actively participating” with Celsius:
“Our exposure to Celsius was minimal, so we intended to write it off against our own balance sheet.”
Zipmex provides services for users in Thailand, Indonesia, Singapore and Australia. Cointelegraph reported in August 2021 that the exchange’s user base had reached 200,000 with over $1 billion in gross transaction volume since its launch in 2019.
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