Zipmex, a cryptocurrency exchange based in Singapore, has recently suspended withdrawals from its platform. Zipmex, a digital asset trading platform based in Singapore, announced today that it will suspend customer withdrawals.
On Wednesday, the company went to Twitter to announce its decision. It cited “a combination of circumstances beyond their control” as the reason for the move.
The exchange stated that withdrawals would be halted until further notice due to “a combination of circumstances beyond the control of the exchange, including volatile market conditions and the resulting financial problems of our key business partners.”
Zipmex is known as Asia’s top digital assets exchange and has offices in Australia, Indonesia and Thailand. It offers a range of products, including spot trading and interest bearing accounts.
The website states that users can earn up to 10% per year by depositing funds to the platform. Zipmex, for example, claims it can offer 6% returns Bitcoin and Ethereum(ETH) as well as 10% on the USDC safecoin.
According to CoinMarketCap, the exchange traded $5,4 million in the last 24 hours.
The company previously raised $52,000,000 in a Series A funding round. It had plans to expand into other markets in Southeast Asia including Vietnam.
In June, Zipmex received an undisclosed amount of financing from Coinbase. This is America’s largest cryptocurrency exchange. According to reports Coinbase originally wanted to acquire the exchange. However, the parties settled on a strategic investment instead.
Decrypt has reached out to Zipmex and will update this article if we hear back.
Crypto firms face more problems
Zipmex is one of a growing number of crypto-centric entities who have ceased withdrawals in the last weeks.
Some ended up filing bankruptcy while others continue to hope for a resumption of operations.
Another Singapore-based crypto platform, Vauld , stopped all deposits and withdrawals earlier this month. This was due to financial difficulties in volatile market conditions.
Vauld has been backed by VCs such as Pantera Capital and Coinbase Ventures. He is currently in discussions with Nexo, a crypto lending company that expressed its intent to purchase the firm.
Legion Strategies, a hedge-fund affiliated with Anthony Scaramucci’s Skybridge Capital, also “temporarily” stopped investor redemptions Monday. Decrypt explained that the suspension was driven by a liquidity mismatch due to late-stage private investments in this fund.
Legion Strategies has a portion of its portfolio that is in cryptocurrency, but the firm insists there is no risk of assets being liquidated.