Zipmex suspends withdrawals as CEO denies financial trouble rumors

Thai cryptocurrency change Zipmex has paused withdrawals on its platform following a “mixture of circumstances” past its management. Cointelegraph studies that Zipmex might be in hassle have been dismissed as “rumors” by CEO and co-founder Marcus Lim following the failed acquisition of the Thai change by Coinbase.

Coinbase made a proposal to amass the Thai cryptocurrency change Zipmex early in quarter one 2022. On June 9, the acquisition fell by way of. As a substitute, Coinbase made a “strategic funding” into the corporate — the quantity has not been disclosed.

Lim informed Cointelegraph that whereas Coinbase is an attention-grabbing associate, “an investor makes extra sense at this stage.” He defined that the group speaks to various totally different events at any cut-off date, citing the bear market as the explanation why Coinbase opted out of the acquisition:

“The acquisition fell by way of as a result of market circumstances. They’ve pulled out in lots of international locations around the globe comparable to Turkey and in Latin America. Coinbase is a superb strategic associate to the enterprise.”

In response to the Block, Zipmex is engaged on a Sequence B+ elevate that might worth it at $400 million. Cointelegraph reported that Zipmex has compliant operations in Thailand, Indonesia, Singapore and Australia. In August 2021, Zipmex’s person base reached 200,000, whereas it has reported over $1 billion in gross transaction quantity since its launch in late 2019.

In response to Zipmex press releases, the corporate’s Thai subsidiary has a Digital Property Alternate license and Brokerage license issued by the Ministry of Finance of Thailand, whereas the group is regulated by the Securities and Alternate Fee.

Nevertheless, a supply near the change defined that Zipmex might be in hassle previous to freezing clients’ funds. In response to the supply, who selected to stay nameless, Zipmex “has a Thai change license and an exempt standing in Singapore.”

“Beneath the Thai License they’re strictly not allowed to the touch buyer funds. Nevertheless, Zipmex has a product on the change referred to as zip-up that successfully lets customers transfer funds beneath the Singapore entity to earn yield.”

The supply defined that the “funds got to Babel to generate the yield. About $100m was lent to Babel, which is now liable to default.” In June, Hong Kong-based asset supervisor Babel Finance halted withdrawals, as a result of “uncommon liquidity pressures.”

South East Asia has not been shielded from the bear market crypto contagion, as in Singapore, Vauld change just lately froze clients’ funds. Nexo has reportedly supplied a buyout however the group additionally supplied to purchase out Celsius.

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When pressed on whether or not Zipmex may face the identical penalties as Celsius, the supply commented that “it is attainable. Babel hasn’t settled their default but, and it is a 100 million greenback gap.” Celsius froze customers’ funds on June 13 and lots of concern the change may undergo the identical destiny as Mt. Gox.

In response to the allegations, Lim informed Cointelegraph that it was “enterprise as regular.” Lim emphasised that the group “doesn’t touch upon rumors.”

Supply: @Drumiskl Twitter

Nevertheless, as per studies from clients of Zipmex and the official Zipmex Twitter account, the agency has since frozen buyer withdrawals.