Zipmex, a Singapore-based digital asset trading platform, announced today that it is suspending client withdrawals,
The company took off Twitter on Wednesday to announce the move, citing “a combination of circumstances beyond our control” that led it to make the decision.
“Due to a combination of circumstances beyond our control, including volatile market conditions, and the resulting financial difficulties of our key business partners, in order to maintain the integrity of our platform, we will pause withdrawals until further notice,” the exchange said.
Zipmex, which markets itself as “Asia’s leading digital asset exchange” and has offices in Thailand, Indonesia and Australia, offers a range of products, including cryptocurrency spot trading and interest-bearing accounts.
According to the company’s website, users can enjoy up to 10% in rewards per year by depositing their money on the platform. For example, Zipmex claims to offer 6% return on Bitcoin (BTC) and Ethereum (ETH), and 10% on USDC stablecoin.
The exchange had a trading volume of $5.4 million in the last 24 hours, per CoinMarketCap.
Earlier, the company raised $52 million in a Series B funding round and had plans to expand into more markets in Southeast Asia, including Vietnam.
Zipmex also secured an undisclosed amount in funding from Coin base, America’s largest crypto exchange, in June. According to reports, Coinbase initially looked at an acquisition of the exchange, but the parties agreed to “a strategic investment” instead.
Decrypt have contacted Zipmex for comments and will update the article if we hear back.
More problems for crypto firms
Zipmex joins a growing list of crypto-centric entities that have moved to pause withdrawals in recent weeks.
Some of them eventually ended up filing for bankruptcy, while others still hope to resume operations.
Earlier this month, another Singapore-based crypto platform, Vauld, suspended all deposits, withdrawals and trading operations, citing financial difficulties amid volatile market conditions.
Vauld is backed by leading VCs including Coinbase Ventures, Pantera Capital and Peter Thiel’s Valar Ventures, and is currently in talks with crypto-lending firm Nexo, which expressed its intention to acquire the firm.
Legion Strategies, a hedge fund affiliated with Anthony Scaramucci’s Skybridge Capital, also “temporarily” halted investor redemptions on Monday, saying Decrypt that “the suspension is largely driven by a liquidity mismatch resulting from late-stage private investments in the fund.”
Legion Strategies has a portion of its portfolio in cryptocurrencies, although the firm insists that “there is zero risk of liquidation of assets.”
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