Cryptocurrency exchange Zipmex resumed withdrawals from its trading wallet two days later, but stated that transfers, deposits and trading would continue to be disabled from Z-wallet.

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In Friday’s Zipmex announcement said its users in Thailand can withdraw funds from their merchant wallet, and the feature is expected to be “re-enabled tonight” for customers in other countries. The cryptocurrency exchange has disabled withdrawals since Wednesday, citing a “combination of circumstances” beyond its control, including recent market volatility.

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“Since the black swan events surrounding the crypto space, Zipmex has recovered most of our funds and assets that have historically been deposited with our deployment partners and is actively working to resolve the situation with the remaining outstanding assets,” Zipmex said. “There were no significant adverse impacts on our operations.”

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Cryptooshala reported on Wednesday that, according to a person close to the exchange, Zipmex had about $100 million in crypto lender Babel Finance that was facing default. The Hong Kong firm suspended withdrawals in June, citing “unusual liquidity pressures”.

However, according to Zipmex, the exchange only has $48 million in Babel and $5 million in Celsius, which could also face insolvency. Zipmex said it is in talks with Babel to resolve the situation and is “actively engaged” with Celsius:

“Our exposure to Celsius was minimal, so we were going to write that off our own balance sheet.”

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Zipmex offers services to users in Thailand, Indonesia, Singapore and Australia. Cryptooshala reported in August 2021 that the exchange’s user base had reached 200,000 with over $1 billion in gross transaction volume since its launch in 2019.