Zipmex allowing some altcoin withdrawals

published : 3 Aug 2022 at 13:40

A billboard promoting the Zipmex app is seen above a street in Bangkok earlier this year. (File photo: Bangkok Post)

Asia crypto exchange Zipmex Pte plans to allow users to withdraw some tokens from their trading accounts.

The exchange set a timeline for withdrawals of Solana’s SOL, Ripple’s XRP and Cardano’s ADA, from Zipmex’s Z Wallet. Larger coins including Bitcoin and Ether remain locked up, the company said in a statement.

Zipmex, which operates in Thailand, Singapore, Indonesia and Australia, halted withdrawals in July, citing “volatile market conditions, and the resulting financial difficulties of our key business partners.” Last week, Thailand’s Securities & Exchange Commission (SEC) ordered Zipmex’s Thai unit to lift a freeze on some digital coins.

SOL tokens would be released on Tuesday, XRP on Thursday and ADA next Tuesday, Zipmex said. Withdrawals from Zipmex’s yield-based program ZipUp+ remain suspended.

The company is one of many crypto firms that have been caught by the US$2 trillion meltdown in value of digital tokens and forced to either halt withdrawals or file for bankruptcy. Last month, Zipmex filed for a moratorium in Singapore court for protection from creditors against any lawsuits and to buy time to arrange a restructuring plan.

Last week, the SEC is demanding answers from executives of Zipmex after the cryptocurrency exchange refused to explain its filing for debt relief in Singapore.

The trouble at Zipmex centres on its ZipUp+ investment product, an interest-bearing account that offered yields as high as 10% to investors who deposited digital assets such as Bitcoin, Ethereum, USD Coin and Tether.

However, it turned out that the company had in turn deposited $53 million from ZipUp+ with the crypto lenders Babel Finance and Celsius, which have since filed for bankruptcy protection.

Zipmex suspended withdrawals on July 20 before resuming them the next day, and said it was working to address its exposure to Babel and Celsius.

The company, founded by Thai and Singaporean partners, has also said it is in negotiations with prospective investors to inject fresh capital.