Cryptocurrency exchange Zipmex resumed withdrawals from its trading wallet after two days, but said transfers, deposits and trades will continue to be disabled from its Z wallet.
In an announcement Friday, Zipmex said its Thailand-based users could withdraw from its trading wallet, with the feature set to be “re-enabled tonight” for customers in other countries. The crypto exchange had had withdrawals disabled since Wednesday, citing a “competition of circumstances” beyond his control, including recent market volatility.
“Since the black swan events surrounding the crypto space, Zipmex has recovered the majority of our funds and assets that were historically on deposit with our deployment partners and has been actively working to resolve the situation of the remaining assets in circulation,” said Zipmex. “There has been no material negative impact on our operations.”
Trade Wallet maintenance is complete. Withdrawals for your Trade Wallet are now enabled from July 22, 2022 at 6:00 p.m. (GMT+7).
Transfer from Z Wallet, deposit and exchange 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 person familiar with the exchange, Zipmex had approximately $100 million in exposure to crypto lender Babel Finance, which was at risk of default. The Hong Kong-based company withdrawals halted in Juneciting “unusual liquidity pressures”.
However, according to Zipmex, the exchange only has $48 million exposure with Babel and $5 million with Celsius, which could also face insolvency. Zipmex said it was in discussions with Babel to resolve the situation and was “actively engaging” with Celsius:
“Our exposure to Celsius was minimal, as such we intended to deduct it from our own balance sheet.”
Zipmex offers services to users in Thailand, Indonesia, Singapore and Australia. Cointelegraph reported August 2021 that the exchange’s user base had reached 200,000 with over $1 billion in gross trading volume since its launch in 2019.