Zipmex is the latest in a string of crypto players globally to run into difficulties following a sharp sell off in crypto markets that started in May with the collapse of two paired tokens, Luna and TerraUSD.
In a tweet on Wednesday, the company cited “volatile market conditions, and the resulting financial difficulties of our key business partners" as reasons for its decision to suspend withdrawals.
Zipmex Thailand CEO Akalarp Yimwilai told an online livestream on Wednesday evening that the local affiliate's difficulties stemmed from problems at Singapore-based Zipmex Global, whose partners, including Babel Finance and Celsius, were experiencing liquidity problems.
Zipmex joins crypto firms from Celsius Network Ltd. to Vauld in suspending withdrawals, leaving depositors in the lurch and underscoring the perils of leveraged bets permeating the industry. Vauld, a crypto lending and trading platform based in Singapore, is trying to stave off collapse by seeking relief from courts and selling itself to a rival.
The exchange was launched in September 2019 and is based in Singapore and Thailand, according to its website. The company’s native ZMT token has tumbled about 90% from its all-time high, CoinGecko data shows.
Singapore-based crypto fund Three Arrows Capital is in liquidation, prompting expectations in Singapore's crypto sector of further restructuring and greater regulatory scrutiny.
The cryptocurrency market failed to recover from Terra’s collapse in May as insolvency threats loomed large over major crypto lending companies, spreading fear among market participants.
