Southeast Asia-based cryptocurrency exchange Zipmex will be resuming crypto withdrawals on Thursday after suspending them a day prior.
On Wednesday, Zipmex announced on their Twitter page that they will be pausing withdrawals due to “volatile market conditions, and the resulting financial difficulties of our key business partners”.
According to news sources, the key business partners are Babel Finance and Celsius. The former has suspended all redemptions and withdrawals since June 17, and Celsius has applied for bankruptcy.
After a day, Zipmex confirmed they will be reinstating withdrawals for their users. Withdrawals for Thailand resumed on Wednesday, with the rest following on Thursday.
The exchange is currently taking steps to address its exposure of $53M to Babel Finance and Celsius. Zipmex states it would write off its $5M exposure to Celsius, and they are currently in talks with Babel Finance to resolve the remaining $48M.
The issues with Zipmex’s partners are part of the ongoing cascade of events that have resulted since the collapse of crypto hedge fund Three Arrows Capital. The fund currently owes $3.5B to creditors, and its founders are purportedly uncontactable.
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