Crypto Alternate Zipmex Halts Withdrawals Citing Market Circumstances, Monetary Difficulties of Enterprise Companions

Cryptocurrency alternate Zipmex has halted withdrawals on account of “risky market circumstances, and the ensuing monetary difficulties of our key enterprise companions.” The alternate operates in Singapore, Australia, Indonesia, and Thailand.

Zipmex Pauses Withdrawals

Crypto alternate Zipmex, which operates in Singapore, Australia, Indonesia, and Thailand, has turn out to be the newest crypto firm to halt withdrawals. The platform described itself as “Asia’s main digital asset alternate offering you excessive liquidity and insurance coverage in your property.”

On Wednesday, Zipmex introduced through Twitter that “on account of a mixture of circumstances past our management together with risky market circumstances, and the ensuing monetary difficulties of our key enterprise companions … we’d be pausing withdrawals till additional discover.”

One of many providers Zipmex supplies is Zipup+ which gives as much as 10% annual rewards on cryptocurrency, in accordance with its web site. This system gives 5 VIP ranges. The essential VIP stage gives 6% APY whereas the very best stage, VIP 4, gives as much as 10% APY. “Make your crypto work arduous, so you’ll be able to dwell simple. Rise up to 12% APY in your crypto if you deposit with Zipmex. Versatile phrases. No minimums,” Zipmex wrote.

In August final yr, the corporate raised $41 million with participation from the Financial institution of Ayudhya (Krungsri), certainly one of Thailand’s largest banks. In the identical month, Zipmex introduced that it teamed up with Visa to launch the Zipmex card.

Zipmex is a licensed cryptocurrency and digital token alternate in Thailand. Nonetheless, the platform shouldn’t be registered in Singapore to offer digital fee token (DPT) providers.

“The Financial Authority of Singapore (‘MAS’) requires us to offer this threat warning to you as a buyer of Zipmex. Earlier than you pay Zipmex any cash or DPT, you have to pay attention to the next,” Zipmex disclosed on its web site, warning:

Zipmex shouldn’t be presently licensed by MAS to offer DPT providers. Which means you won’t be able to get better all the cash or DPTs you paid to Zipmex if Zipmex’s enterprise fails.

This month, crypto lenders Celsius Community and Voyager Digital halted withdrawals and subsequently filed for chapter safety. Babel Finance additionally suspended withdrawals in June, following troubles at crypto hedge fund Three Arrows Capital (3AC).

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