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Thai crypto exchange Zipmex has indefinitely suspended withdrawals; the exchange tweeted on July 20. According to Zipmex, this pause is due to “a combination of circumstances beyond our control.” Specifically, the exchange mentioned volatile market conditions, which it claims have caused some of its key business partners financial difficulties.
According to the tweet, Zipmex decided to suspend withdrawals to maintain its platform’s integrity.
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
This news comes after Cointelegraph reported that the exchange might be facing financial difficulties. The crypto media company cited an anonymous source familiar with Zipmex’s operations. Per the source, Zipmex’s Thai license does not allow it to use customer funds.
However, the exchange has a product, zip-up, allowing Thai clients to transfer funds to its Singapore arm and earn yield. The source further detailed that the Singapore entity loaned customer funds to Babel Finance. To be precise, the source claims Zipmex lent Babel – which is facing liquidity troubles – $100 million.
With Babel Finance failing to settle its defaulted loan, the source said it is possible for Zipmex to go the Celsius way. Celsius Network started by pausing withdrawals last month before filing for Chapter 11 bankruptcy on July 13.
Zipmex CEO Marcus Lim shot down these claims, saying the exchange’s operations are running as usual. However, the indefinite suspension of withdrawals narrates an entirely different story.
Crypto Market Stages Recovery
While Zipmex cited market volatility as one of the reasons to pause withdrawals, the crypto market is currently trending upwards. The market started this week on a bullish note and has not shown signs of slowing down.
At the time of writing, the crypto market stands at $1.07 trillion after gaining 4.04% over the past 24 hours.
Bitcoin (BTC), the largest crypto by capitalization, is up 7.79% in the day to change hands at $23,836.96. This is the highest level the cryptocurrency has traded at over the past 30 days. The altcoin market is also green, with Ethereum (ETH) gaining 55% over the past seven days to trade at $1,602.72.