Zipmex Crypto Exchange Resumes Withdrawals for Altcoins, No Word on Bitcoin

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In Brief
  • Zipmex announced a progressive unfreezing of three altcoin withdrawals in the next week.

  • It's still unclear when bitcoin, ether and other stablecoins will be made available.

  • The company had to absorb the $50 million loss of a Celsius deposit after the company filed for bankruptcy.

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Embattled Asian crypto exchange resumes withdrawals for some altcoins, though bitcoin and ether remain frozen.

The exchange will progressively allow XRP, Solana (SOL), and ADA withdrawals from the Z Wallet, which will be credited into users’ Trade wallets.

Earlier this month, the Asian exchange announced the temporary halt of transfers between its Z wallet and Trade Wallet, citing market instability. It had deposited $48 million into Babel for its ZipUp+ product and commenced withdrawals when market conditions turned south

It had also invested $5 million in Celsius Finance and was in talks with the company regarding a resolution after it also paused withdrawals. Celsius then paused withdrawals on June 13, 2022, and filed for bankruptcy on July 14, 2022, causing Zipmex to write off its deposits on the exchange’s balance sheet.

SOL, ADA, and XRP withdrawals open

On Aug. 2, 100% of users’ SOL will be released, on Aug. 4, 2022, 100% of XRP will be released, and on Aug. 9, 2022, Zipmex will make 100% of ADA available. Stablecoins will remain inaccessible.

Regarding its choice to deposit money in Celsius and Babel Finance, Zipmex cited the reputable financial backing received by both companies and stressed that due diligence had been performed. The exchange is pursuing the recovery of deposits from Babel Finance.

The company clarified rumors that it had filed for bankruptcy as false. It instead filed for a moratorium with a Singapore court to give itself time to address issues and determine an acceptable outcome for customers.

Last week, the Thai Securities and Exchange Commission ordered the exchange to rescind the freezing of some coins. Zipmex responded by restoring access to its Trade wallet.

A step in the right direction for Zipmex

Zipmex acknowledged that the move to unfreeze only a select number of assets was a small consolation, but a step in the right direction.

On July 24, Be[In]Crypto reported that the exchange’s co-founder Akalarp Yimwilai was seen in a since-deleted YouTube video in apparent negotiations with potential investors.

The company has tweeted, saying that negotiations are ongoing but that the potential investor had entered into a non-disclosure agreement as it reviewed the exchange’s financials. No official statement has been made regarding the outcomes of said negotiations.

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David is an electronic engineer with nine years of experience. He joined BeInCrypto to combine his passion for writing and his interest in fast-moving industries, cultivated from his university days. He hopes to make crypto easy to understand.

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