March 4, 2024

Bitcoin Exchange Zipmex Suspends Withdrawals Due to 'Coincidence'

Bitcoin exchange Zipmex has suspended withdrawals due to a “coincidence of circumstances”

The Thai cryptocurrency exchange Zipmex has suspended the withdrawal of funds due to a “confluence” independent of the companycircumstances." Restrictions are in effect until further notice.

The exchange referred to the circumstances as "unstable market conditions and the resulting financial difficulties of key business partners."

In the summer of 2021, Zipmex raised $41 million from the fifth largest bank in Thailand, Bank of Ayudhya, media companies and venture capital funds.

In June 2022, The Block announced Coinbase's plans to acquire the bitcoin exchange. As a result, the parties agreed on strategic investments, according to sources.

According to media reports, Zipmex was going to raise $40 million in Series B+, bringing the valuation to $400 million.

Markus Lim, CEO and co-founder of the company, called Coinbase an “interesting partner” in a comment to Cointelegraph. At this stage, the investment "makes more sense," he said.

“The acquisition fell through due to market conditions. They abandoned many countries such as Turkey and Latin America. Coinbase is a great strategic business partner,” Lim said.

The source of the publication said that Zipmex allegedlyloaned “about $100 million” to one of the largest crypto lenders in Asia, Babel Finance. In mid-June, the latter announced the suspension of payments and withdrawals due to lack of liquidity.

The company later denied reports of insolvency. On July 19, it became known that Babel Finance had attracted lawyers to advise on the restructuring.

Hedge fund Three Arrows Capital, crypto lending platforms Celsius Network and Vauld also had problems.

The interlocutor of Cointelegraph did not rule out that Zipmex may face similar difficulties. According to him, Babel "didn't settle its default and it's a $100 million hole."

In response to a request from the publication, Lim said that the company "does not comment on rumors."

How Celsius, 3AC and stETH problems will affect the price of Ethereum and the cryptocurrency market

Recall that the head of Galaxy Digital, Mike Novogratz, said that “greed, ignorance and stupid risk management” led to the fall of the cryptocurrency market.

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