The cryptocurrency market appears to be partially recovering in the last week after several months of hardship and price drops. Despite this, crypto companies continue to face financial problems.
This time around, Southeast Asia-based cryptocurrency exchange Zipmex has announced that it is pausing withdrawals from its customers until further notice. As a reason for this, the company cited crypto “volatile market conditions”:
“Due to a combination of circumstances beyond our control, including volatile market conditions and resulting financial difficulties from our key business partners, to maintain the integrity of our platform, we will be pausing withdrawals until further notice,” the statement wrote. company in one tweet published this Wednesday (20).
Zipmex is pausing customer withdrawals
Founded in the year 2018, Zipmex is an exchange that offers trading and investment services in digital assets. The company operates in countries such as Thailand, Indonesia, Singapore and Australia.
In 2021, the company raised $41 million in investments. One of Thailand’s largest banks, Bank of Ayudhya, was one of those that financed Zipmex.
Additionally, in June, Coinbase made a strategic investment in Zipmex. The company’s goal was to achieve a valuation of $400 million.
However, apparently, this was not enough for the company to be able to deal with the adverse scenario of the crypto market.
Crypto companies struggling
In fact, several companies in the industry had to do what Zipmex did. Babel Finance, for example, also had to freeze its clients’ funds.
As Cryptheory reported on June 17, the company cited “unusual liquidity pressures” in the market as a reason for the pause.
Likewise, exchange CoinFlex announced the interruption of withdrawals for its customers, citing the “extreme market conditions”. This action generated a lot of distrust among some users and as a result, people accused the exchange of being a financial pyramid.
Earlier this month it was the turn of Singapore-based crypto lending company Vauld to make the same decision. The company paused its activities and suspended withdrawals from its customers due to financial problems.
The sequence of withdrawals pauses came shortly after digital asset lending company Celsius suspended customer withdrawals. This caused a great deal of turmoil in the crypto market.
Finally, earlier this July, Celsius filed for Chapter 11 bankruptcy protection in the US Bankruptcy Court.