- Zimpex has announced the extension of the suspension of withdrawal till Friday
- The time of resuming the withdrawals is not specified yet.
On Thursday, Zipmex announced to extend its suspension of withdrawal till Friday, but the time of lifting the suspension is not specified yet. The action has been taken to block any technical issues.
Zipmex is a Singapore-based crypto exchange with branches in Indonesia, Thailand, and Australia. It was introduced in September 2019 and currently holds its position among 187 crypto exchanges. According to CoinMarketCap, the company’s daily trading volume is around $5 million.
Reason for suspending withdrawal
The company specified the reason behind the withdrawal suspension through a tweet that mentioned that instability in the crypto market is leading to financial difficulties.
“The current situations including instability in the crypto market eventually leading to financial difficulties of our core business partners and to maintain the morality of our company we are suspending withdrawals.”
According to the reports, the CEO of Zimpex Thailand, Akalarp Yimwilai, said that the issues drove the difficulties in Zimpex Global. Their partners like Babel Finance and Celsius are currently facing financial difficulties.
Due to the overall downfall of the crypto market, many crypto exchanges like Zimpex have made the same decision in the past few months. Babel Finance, Vauld, Celsius, etc., have already suspended the withdrawals and operations.
The Securities and Exchange Commission of Thailand asked the firm to reveal the amount of clients’ assets and give a detailed structure of usage of the deposited fund.
On a Telegram group, Zimpex announced that it has US$48 million and US$5 million exposure to Babel Finance and Celsius, respectively. According to the sources, the company has sunk its US$100 million, which it lent to Babel Finance.
Conclusion
Due to the downfall in the crypto market, many crypto exchanges and the firms related to it are facing massive difficulties. If this continues, then in no time, the whole crypto market will stand in the witness box.
Source: https://www.thecoinrepublic.com/2022/07/22/singapores-crypto-exchange-zipmex-restricts-withdrawal-till-friday/