• Thu. Apr 18th, 2024

Zipmex To Reopen Deposit And Withdrawals On Its Trade Wallet

Jul 21, 2022

Since the crypto market bloodbath, several giant firms in the industry has closed operation. Meanwhile, it is uncertain when the crypto market will recover.

On Wednesday, the crypto exchange company, Zipmex, announced the shutdown of withdrawals on its platform. The company joined the list of other platforms that paused withdrawals due to liquidity.

However, according to the platform, it plans to open its withdrawals option. The company said it is exploring all avenues, including restructuring, legal action, and fundraising.

Zipmex Throws Lifeline To Users 

Recently, the crypto market decline has affected several big crypto firms. Notable giants such as Celsius and Voyager had gone bankrupt, therefore shutting down their operations.

Unfortunately, an Asian-based exchange platform has joined the list. On July 21st, the crypto exchange discussed its liquidity problems. It said it wants to re-enable deposits and withdrawals on its Trade Wallet. 

On Wednesday, the company has frozen withdrawals citing the volatile market situation. This action blocked users from accessing funds on the platform. 

The company announced it would enable withdrawals and deposits on its official Twitter account. However, the post noted that trading will not function for now.

In another statement that the company deleted, the firm stated that it is working to solve the current situation. The deleted statement said that:

“Zipmex has obtained most of its assets and funds deposited with its deployment partners. Also, Zipmex is working to solve the current issue for the other outstanding assets.”

Furthermore, the crypto exchange stated that some of its assets were exposed to crypto lenders. Unfortunately, these crypto lenders have suffered huge losses following the crypto market downturn.

Zipmex Exploring Different Options 

According to Zipmex, it had assets worth over $48 million exposed to Babel Finance. Also, it has $5 million in exposure to Celsius. Both crypto lenders have gone bankrupt since June.

Also, they had stopped the withdrawal option on their platforms amid the liquidity crisis. Last week, Celsius applied for Chapter 11 bankruptcy while still struggling to pay its users.

Meanwhile, Zipmex has revealed a strategy in the deleted announcement. The plan said the company was exploring various avenues such as legal action, fundraising, and restructuring. 

Currently, the Z Wallet and ZipUp transfer options are still disabled. Furthermore, the company stated that its users remain its foremost priority. 

Hence, it will make efforts to restore withdrawals and deposits on the platform for customers. Also, it would ensure transparency in its dealings. However, the company has not revealed why it deleted its statement.

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