Last Updated on September 25, 2022 by Bitfinsider

Zipmex is the latest cryptocurrency company to take drastic measures to deal with the market downturn.

Due to market volatility and other factors, the Asian firm announced on Wednesday that it had halted customer withdrawals. According to a tweet from the company’s official account:

“Due to a combination of circumstances beyond our control including volatile market conditions, and the resulting financial difficulties of our key business partners, to maintain the integrity of our platform, we would be pausing withdrawals until further notice.” 

Zipmex

Zipmex bills itself as “Asia’s leading digital assets exchange,” and it provides customers with access to assets such as Bitcoin, Ethereum, and its own Zipmex token. Customers can earn up to 12% in rewards per year by depositing funds on the Zipmex platform, according to the website. For example, the exchange claims to offer 10% annualized returns on USDC and 6% on Bitcoin and Ethereum, but it does not explain how the yield is calculated.

In March, the company raised $11 million in a Series B funding round, and it recently received an investment from Coinbase (the U.S. exchange initially explored a potential acquisition, but the deal fell through).

The freezing of customer withdrawals is significant because it effectively prevents customers from accessing their money. Because Zipmex has not stated when it plans to re-open withdrawals, other than to say that they are paused “until further notice,” today’s update is bad news for the exchange’s customers.

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