Crypto exchange Zipmex halts withdrawals due to 'volatile market conditions'

Southeast Asian crypto exchange Zipmex announced on Wednesday it’s halting withdrawals until further notice.  

"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," the company wrote in a tweet. 

The move comes following widespread turmoil and downward pressure in crypto markets as a number of businesses have struggled to weather a dive in ether and bitcoin prices. 

Other crypto businesses have suspended withdrawals in a similar fashion in recent weeks. At the end of June, crypto exchange CoinFLEX announced it was pausing all withdrawals due to "extreme market conditions and continued uncertainty involving a counterparty." 

Shortly after, Singapore-based lending platform Vauld made the same decision. The firm said it was struggling due to market conditions as well as financial difficulties of business partners. Since June 12, the platform had seen customer withdrawals of nearly $198 million, triggered by the implosion of the TerraUSD stablecoin, Celsius's similar decision to halt withdrawals and Three Arrows Capital's woes.  

Babel Finance was also reportedly forced to hire restructuring lawyers after it froze customer funds, citing “unusual liquidity pressures.” 

Zipmex is no stranger to difficult business decisions. In June, The Block reported that it had talked to Coinbase about potentially being acquired, although the pair had settled on Coinbase making a strategic investment instead, according to people familiar with the matter.  

Zipmex had been courting investors as it attempted to raise around $40 million at a valuation of $400 million, one other person close to the talks said at the time.  

Updated 7:20 a.m. ET with details of the wider market malaise.