Zipmex is re-enabling withdrawals for 100% of user funds stored in its Z Wallet—but only for a select few altcoins.
In a detailed statement released Tuesday, the South Asian cryptocurrency exchange said it will make available all users’ SOL balances today, all XRP balances on Thursday, and all ADA balances on August 9.
All three assets are currently top 10 cryptocurrencies by market cap, but they were nevertheless “unaffected” amid Zipmex’s liquidity crisis last month. By contrast, it remains unclear when customers may regain access to market-leading assets like BitcoinBitcoin, EthereumEthereum, and stablecoinsstablecoins.
“We are working to ensure that we are in full compliance as we start to release some of these tokens into your Trade Wallet,” Zipmex said.
Bitcoin Bear Market Claims Another Crypto Firm as Zipmex Files for Protection From Bankruptcy
Editor's note: This article's headline was updated after publication to clarify that Zipmex has filed for protections from bankruptcy and not bankruptcy. South Asian cryptocurrency exchange Zipmex is seeking bankruptcy protection against legal action from creditors, according to an update from the company on Wednesday. The company, which froze user withdrawals last week, submitted moratorium applications on July 22 in Singapore for its various entities. These are Zipmex Asia Pte Ltd, Zipmex Pte...
Zipmex abruptly froze all withdrawals on July 20 after encountering financial issues with so-called “key business partners.” It then resumed withdrawals and activity within certain areas of its platform the following day, such as its Trade Wallet and NFT platform. Its Z Wallet platform, however, which contains the bulk of customers’ funds, stayed frozen.
The company also revealed the identities of its troubled “partners”: Babel Finance and Celsius. Zipmex was exposed to each, respectively, for $48 million and $5 million, the latter of which filed for bankruptcy during a whirlpool of industry contagion beginning last month.
After being drawn into the storm, Zipmex filed for bankruptcy protection on July 22 in Singapore. It is now working through liquidity issues and forming a restructuring plan.
Zipmex Says Discussions With Potential Investors ‘Have Progressed Significantly’
Just days after pausing customer withdrawals, Singapore-based cryptocurrency exchange Zipmex said it’s received a memorandum of understanding from a potential investor, which could be looking to buy out the firm. “Our conversations with various interested parties have progressed significantly,” the company said in a tweet, adding that “one of those parties has offered terms in an MOU,” a non-binding agreement that’s often a starting point for negotiations. Zipmex did not describe the exact natur...
In Tuesday’s statement, the firm specified it is working on seeing its assets restored from Babel Finance. “Secondly, we are in advanced fundraising conversations which will allow us to re-enable Z Wallet transfers,” the statement continued.
The company also claims to be in conversation with “multiple reputable, and large-scale investors,” signing a Memorandum Of Agreement with two of them. One of the firm’s shareholders is said to have invested further into Zipmex token (ZMT), on which development is “moving ahead.”
