Zipmex reopens withdrawals from trading wallets

Quick Take

  • Zipmex has resumed withdrawals on Trade Wallets starting Friday.
  • The exchange noted that withdrawals on Z Wallets will remain disabled.

Zipmex announced it has resumed withdrawals from its Trade Wallets, two days after the platform paused the feature. 

Zipmex uses two types of wallets to manage their assets. The first is called a Trade Wallet, which is where users can deposit fiat and other crypto assets if they wish to trade on the platform. Z Wallet is the second type of wallet, where the exchange users can deposit funds to receive rewards and bonuses.

In its update, Zipmex said users can withdraw funds from Trade Wallets starting Friday 7 a.m. ET. However, the firm added that Z wallets will remain closed, which means normal operations have not been restored.

Earlier this week, the exchange froze all client funds, citing "financial difficulties" of its key financial partners. It's evident that the exchange likely suffered from the cascading effects of a financial crisis in the crypto sector.

The firm reported that it had a $48 million exposure to Babel Finance and $5 million to Celsius, two other embattled firms that have kept clients funds on hold due to insolvency issues.

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