Earlier this year, Zipmex had disabled the withdrawals amid the crypto market conditions. But now, they released a statement that said Zipmex to reopen withdrawals of Ethereum to the customer’s wallet on August 11, followed by Bitcoin next week.
Zipmex has released a complete plan that discusses airdropping a small amount of Ethereum and Bitcoin on two different dates. They have mentioned on Twitter that they are working hard to return customers’ money.
Crypto Exchange Zipmex To Reopen Withdrawals For Bitcoin And Ethereum
Several other coins were released to the customer’s wallet in the last few days, SOL, ADA, and XRP.
On July 20, they suspended the user withdrawal. Zipmex customers were not able to sell or trade their cryptocurrency tokens. The company had been into losses and owed USD 48 Million to Babel Finance and 5 Million to a famous crypto lending platform Celsius Network.
Zipmex And Crypto Liquidity Crisis
Zipmex had an exposure of USD 5 Million and USD 48 Million in Babal Finance and Celsius Network. All the crypto tokens from the ZipUp+ account had been sent to Celsius. In July, Celsius paused all the withdrawals and filed for bankruptcy. Zipmex has not been able to withdraw the funds from Celsius since then. They further mentioned it on their balance sheet that they released a few days back.
This problem had given birth to some more problems like Liquidity issues on Babale Finance. Zipmex further reported, “to prevent the ripple effect from the crypto market volatility, and invalid reports about Zipmexes’ exposure to a defi solution (Babel Finance), Zipmex decided to pause all the transfers from the trade wallet to Z wallet.
Funds Are Released To The Remaining Wallets
On Monday, Zipmex announced that in the coming weeks, they would release all the balance to the client’s z wallets. Also, they would open the withdrawal of some altcoins like Cardano and Rippled.
Zipmex Exposure To Babel Finance And Celsius
As discussed earlier, Zipmex had been exposed to Babel FInance and Celsius Network. A huge sum of losses has happened due to bankruptcy filed by Celsius. The Singapore-based company Zipmex operates in various countries like Indonesia, Australia, and Thailand. In all the nations, they had disabled the withdrawals. According to their announcements, they are facing some problems recovering USD 53 Million worth of Crypto tokens.
Also, they have filed for protection from the creditors in the local court in Singapore. And on August 15, there would be the Moratorium court hearing. Further, Zipmex has also informed that they are in talks with the investors looking forward to buying the company. Recently on Saturday last week, Thai-based SEC announced that they are working together to collect all the data of the impacted customers and would try to resolve the issue by coordinating with the customer service personnel.
Since the terra luna collapse, several crypto lending platforms have been affected and stopped the withdrawal and further activities on the platform. It would take some time to recover from the cryptocurrency situation.