- Asian-based crypto exchange Zipmex has paused withdrawal effective immediately.
- Financial difficulties and volatile market conditions were cited as the primary reasons behind the decisions.
- The company could be insolvent although company officials have not yet confirmed this and CEO Marcus Lim denied the possibility.
- FTX CEO Sam Bankman-Fried previously told Forbes in late June that some third-tier exchanges might already be insolvent.
- SBF made the comments as the contagion in crypto hit a fever pitch and multiple platforms faced uncertain times.
Cryptocurrency exchange Zipmex announced a pause on withdrawals today, citing volatility in the crypto market and the financial difficulties of some key business partners. The platform said the move could help to solidify the exchange’s integrity as contagion in crypto continues.
Zipmex shared the update via a post on Twitter published on Wednesday. No further updates have surfaced from the platform at press time.
The centralized crypto exchange is based in Southeast Asia, primarily in Singapore and Thailand. After launching in September 2019, the exchange claims to have grown a customer base of 2 million users and serves investors in Australia, Singapore, and Indonesia.
Data from CoinMarketCap shows that the platform is ranked 209 among crypto exchanges worldwide and boasts north of $5 million in daily trading volume.
While the halt on withdrawals is official, there are speculations that the company might be in deeper waters than first thought. Cointelegraph reported that Zipmex might have exposure to crypto lender Babel Finance and default on a $100 million loan could be imminent.
However, Zipmex CEO and co-founder Marcus Lim supposedly denied the rumors.
Notably, major crypto exchange Coinbase attempted to buy out Zipmex but the deal fell through following a downturn in the crypto market. Coinbase opted for a “strategic investment” in Lim’s company instead, per reports.
Zipmex Update Stirrs Up SBF’s Comments On Third-Tier Crypto Exchanges And Insolvency
Although no confirmation has surfaced to suggest that Zipmex is indeed facing insolvency, the development has sparked conversations on social media, and Sam Bankman-Fried’s earlier remarks supposedly resurfaced.
In June 2022, EthereumWorldNews reported the FTX chief said some third-tier crypto exchanges might already be insolvent. SBF opined on this possibility in an interview with Forbes.