Zipmex opens up altcoin withdrawals after Babel, Celsius struggles

Crypto exchange Zipmex has opened up withdrawals for altcoins –  cryptocurrencies other than heavyweights Bitcoin and Ethereum – after suspending the feature due to its exposure to Babel and Celsius.

Zipmex CEO Marcus Lim / Photo credit: Zipmex

The crypto firm had also begun releasing unaffected digital assets from its Z Wallet on August 2, allowing withdrawals as per usual. Solana’s release process began on August 2, with Ripple and Cardano due to begin processes on August 4 and August 9, respectively.

On July 20, the company announced a withdrawal suspension. The company said this was due to a meeting with Babel where it became clear that the return of assets may not be guaranteed.

Zipmex then reported this to Thailand’s Securities and Exchange Commission, with the regulator calling for affected users to submit information on how they were affected via a public forum while quizzing Zipmex on the size of customer assets under its management.

The crypto firm also clarified that it has only applied for a moratorium with the Singapore Court, acting upon legal advice, and has not filed for bankruptcy. The moratorium is meant to provide the company with time to resolve its liquidity issues, and the firm said that it does not affect any of its current operations. It also promised updates when there is progress in the situation.

Zipmex Singapore will lead the submission of documents to the court on August 12, with the deliberation on the request happening on August 15.

The crypto firm also clarified that it is still in talks with liquidity-challenged Babel Finance to pursue a return of assets. A memorandum of understanding has also been signed between Zipmex and two investors.

An unnamed current Zipmex shareholder also made an additional investment in the firm’s native Zipmex token to boost investor confidence, and the development of the token is on track for the company.

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