Singaporean crypto exchange Zipmex on Wednesday announcement it halted customer fund withdrawals due to “volatile market conditions”. The company bills itself as “Asia’s leading digital asset exchange” working primarily in Singapore, Australia, Indonesia and Thailand.
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“Due to a combination of circumstances beyond our control, including volatile market conditions and the resulting financial hardship for our major trading partners, in order to maintain the integrity of our platform, we would be suspending withdrawals until new order,” Zipmex said.
One of the main factors was the financial contagion resulting from its exposure to Babel Finance and Celsius Network, beleaguered crypto lenders that are undergoing financial restructuring after recently filing for Chapter 11 bankruptcy.
The company said trading on its platform would remain disabled until further notice and that client safety was “the number one priority”.
In the past 24 hours, CoinMarketCap recorded a trading volume worth $6.9 million on the platform.
The move came as a surprise to some industry players, as the company had expansion plans for its Southeast Asian market and even planned to add Vietnam to its list of countries. In March, Zipmex also raised $52 million in Series B funding.
Zipmex is a key player in the Southeast Asian crypto landscape, accounting for nearly a quarter of Thailand’s total revenue from the crypto market, which serves nearly 1.7 million investors.
The company also recently waded into the Asian metaverse through a partnership with Polygon Studios that was expected to attract more new customers.
Zipmex markets itself to users by claiming that customers who deposit funds can earn up to 10% in rewards each year, with the company offering returns of 10% on USDC stablecoins and 6% on Bitcoin.