Zipmex has become the latest crypto platform to suspend withdrawals. The Singapore-based crypto exchange Zipmex froze withdrawals due to financial difficulties that link back to the troubled crypto lender Babel Finance. On Thursday, Zipmex tweeted that it would extend the withdrawal freeze resulting from its financial difficulties. According to several industry sources, Zipmex may face losses from funds lent to Hong Kong-based lending platform Babel Finance and collapsed Celsius Network.
On Wednesday, Zipmex tweeted that they would pause withdrawals to maintain the integrity of their platform. This would have been caused by a “combination of circumstances” and the financial difficulties of their key business partners. In a update on Thursday, Zipmex announced the extension of its maintenance period with the payout freeze until July 22, 2022:
Zipmex said it was in talks with Babel Finance, which suspended withdrawals in June, to resolve its $48 million exposure to the crypto services firm, while a Babel Finance spokesperson said it was actively working with Zipmex to avoid customer losses. According to DoinDesk, Zipmex is looking for fresh funds from investors to deal with financial troubles.
