Embattled Crypto Exchange Zipmex Set To Release Bitcoin And Ethereum For Customers
Cryptocurrency exchange Zipmex will soon release Bitcoin and Ethereum tokens this week, allowing customers to retrieve their assets after it suspended withdrawals from its Z Wallet product. The move will allow 60% of its customers to retrieve their digital assets.
The Singapore-based crypto exchange, which also operates in Australia, Thailand, and Indonesia, halted customer withdrawals from its Z Wallet in July amid the market turmoil citing “volatile market conditions” as reasons for doing so. It has been reported that Zipmex is facing a loss of $100 million in funds lent to crypto lender Babel Finance. Babel froze withdrawals in mid-June as volatile conditions in the crypto market led to a flurry of defaults relating to overleveraged firms such as Three Arrows Capital and Celsius Network. The company said in a Tweet that Ethereum will be released on Thursday, 11 August, and Bitcoin on August 16:
Zipmex is planning to release a specific amount of ETH and BTC on 11 and 16 August respectively. We’re working hard to release the balance of Z Wallet holdings ASAP.
Last week, Zipmex released Cardano (ADA), Ripple (XRP), and Solana (SOL) tokens to users’ wallets. The process started on Tuesday, August 2 with SOL, followed by XRP on Thursday, and finally ADA on Sunday.
Zipmex is just one of the several cryptocurrency firms hit by the $2 trillion meltdown in the market that forced many players to halt withdrawals and some to file for bankruptcy. The firm did however announce late last month that it was in talks with investors for potential funding.
Shortly after Zipmex suspended its withdrawals, the Thai Securities and Exchange Commission (SEC) launched a hotline for Zipmex customers to submit details on their losses.
The SEC also launched an investigation into the exchanges, claiming the company may have violated trading rules by suspending withdrawals. It said that the firms cited inadequate reasons for such actions as “market fluctuations.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.