Crypto Exchange Zipmex is set to Re-Open Ethereum, and Bitcoin Withdrawals following a July withdrawal halt. The new date for resumption is set as August 11 and August 16 for ETH and BTC respectively.
On July 20, Zipmex stopped processing withdrawals from the marketplace, claiming financial difficulties brought on by its exposure to Celsius and Babel Finance. The ongoing liquidity problem in the business has both companies at its epicenter.
Following a restructuring strategy, Zipmex has been getting ready to coordinate with clients and authorities to guarantee money is refunded.
According to the notification, “We will be providing periodic updates on our plans and schedules to transfer the remaining affected assets to users via each country’s official communication channels.”
The exchange announced withdrawals for several cryptocurrencies, including Solana (SOL), Cardano (ADA), and Ripple last week, bringing these ambitions to fruition (XRP).
On August 2, Zipmex announced the launch of the aforementioned altcoins, saying, “We are working to guarantee that we are in full compliance when we start to release some of these tokens into your Trade Wallet starting in the middle of August.”
Zipmex’s Liquidity Issues
Zipmex had a $48 million exposure to Babel Finance and a $5 million exposure to Celsius. Money had been placed into Celsius from Zipmex’s ZipUp+ interest-bearing accounts. Then, on June 13, Celsius halted withdrawals across the platform, including from accounts connected to Zipmex, and the next day, on June 14, it declared bankruptcy.
Despite being legally prohibited from doing so, Zipmex “wrote off this deposit and absorbed it into our own balance sheet.” Similar liquidity troubles that plagued Babel Finance made these issues worse.
Zipmex decided to temporarily block transfers between the Z Wallet and the Trade Wallet “in order to prevent short-term market volatility due to what was, at the time, erroneous and emerging reports on Zipmex’s exposure to Babel Finance,” the company said last week.
