Asian Crypto Exchange Zipmex Re-enables Client Withdrawals

• The exchange said on Wednesday that it had halted all withdrawals.
• Trade wallet deposits and withdrawals will begin at 17:00 UTC today.

Zipmex is preparing to reopen withdrawals and deposits using its Trade Wallet function the day after it had frozen user withdrawals owing to the market’s volatility. They said they were “exploring all available channels including fundraising, legal action, and restructuring” in a statement.

It was announced Thursday that the Asian crypto exchange was re-enabling client withdrawals and deposits using its Trade Wallet function, which had previously been disabled. Due to unpredictable market circumstances, the exchange said on Wednesday that it had halted all withdrawals, preventing users from accessing their assets.

Lifeline For Customers

Trade wallet deposits and withdrawals will begin at 17:00 UTC today, Zipmex said in a tweet. It also said that trade would continue to be banned. The exchange highlighted “the black swan events surrounding the crypto space” in a now-deleted message it sent to its social media accounts this morning and stated it was trying to rectify the matter.

The statement read:

“Zipmex has retrieved the majority of our funds and assets that were historically deposited with our deployment partners and have been actively working to resolve the situation for the remaining outstanding assets. There were no materially adverse impacts to our operations.”  

Babel Finance and Celsius, two of the most significant casualties in June’s crypto market collapses, had a total exposure of $48 million and $5 million, respectively, to Zipmex at the time. Both Babel and Celsius froze customer withdrawals during their own liquidity issues; Celsius has subsequently filed for Chapter 11 bankruptcy, and consumers are still unable to access their holdings. Transfers between ZipUp and Z Wallet have been put on hold for the time being.

Source