Asian Crypto Exchange Second In 2 Weeks To “Pause Withdrawals”

Just around two weeks after Vauld suspended withdrawals and trading, another crypto company announced a similar stance. Volatile market conditions have in the recent times put several cryptocurrency companies on the brink of collapse. What makes this even worse is that there would not be any warning or alert prior to making decisions to pause withdrawals.

Another Singapore Based Exchange Puts Brake

Just like Vauld, crypto exchange Zipmex is also based out of Singapore, meaning possibility of negative regulatory action from the country’s authorities. In an announcement on Wednesday, the company management cited financial difficulties of business partners. This could very well mean that the exchange’s partners have exposure to some of the bankrupt crypto companies. As with several companies in the recent past, the company cited volatile market conditions for the extreme decision.

To make things worse, the company has not declared any potential timeline on the revival plans and developments. The Zipmex team tweeted,

“Due to a combination of circumstances beyond our control including volatile market conditions, and the resulting financial difficulties of our key business partners, to maintain the integrity of our platform, we would be pausing withdrawals until further notice.”

Financial Difficulties Linked To Babel Finance?

According to crypto enthusiast otteroooo, Zipmex is rumored to have lost substantial user deposits in Babel Finance. Also, it is Thailand’s second largest exchange with a crypto trail of $50 million in Celsius, he said. Meanwhile, the company assured customers about their asset safety on its platform. “At Zipmex, the security of our customers is our number one priority. As such, we strive to provide the most secure platform possible.”

Earlier this month, Vauld made an announcement stating immediate suspension of withdrawals, deposits and trading. It mentioned financial difficulties of business partners as the reason behind the halt. Over two weeks since the announcement, Vauld users still await assurance on future plans. The users demand a concrete roadmap towards return of user funds. The company, on the other side, is weighing in on potential acquisition plans while trying to get an additional moratorium. Recently, the company revealed it has a $70 million liability burden with about $330 million in assets and liabilities worth $400 million.