Zipmex, a cryptocurrency exchange that operates in markets including Singapore and Thailand, said it has halted withdrawals as a series of defaults continue to haunt the digital asset industry.
The company cited in a tweet on Wednesday “volatile market conditions and resulting financial difficulties for our key trading partners” as reasons for its decision. Zipmex CEO Marcus Lim did not immediately respond to requests for comment.
Zipmex joins crypto firms from Celsius Netwoek to Vauld in suspending withdrawals, leaving depositors on the ropes and underscoring the dangers of leveraged gambling that pervade the industry. Vauld, a Singapore-based cryptocurrency trading and lending platform, is trying to stave off collapse by asking the courts for help and selling out to a rival.
Zipmex has a license to trade digital assets from the Thai Securities and Exchange Commission, according to its website. In Singapore, the exchange has an exempt payment service provider permit, rather than a full license under the new central bank regime for crypto-asset businesses.
The exchange launched in September 2019 and is based in Singapore and Thailand, according to its website. The company’s native ZMT token is down around 90% from its all-time high, according to data from CoinGecko.
Among its products is ZipUp+, an account that pays returns of up to 10% on deposits of tokens such as bitcoin, ether, and litecoin. However, Zipmex warns on its website that potential users are not protected as the company is not licensed by the Monetary Authority of Singapore.
“This means that you will not be able to get back all the money or DPT you paid to Zipmex if Zipmex’s business fails,” reads a notice on the website, referring to the digital payment tokens.
