Thailand-based cryptocurrency exchange Zipmex has suspended withdrawals due to a “coincidence” beyond the company’s control. Restrictions are in effect until further notice.

Due to a combination of circumstances beyond our control, including volatile market conditions, and the resulting financial difficulties of our key partners, we will pause withdrawals until further notice to protect the integrity of our platform.

— ZIPMEX (@zipmex) 20 July 2022

The exchange described the conditions as “unstable market conditions and financial difficulties of key business partners”.

In the summer of 2021, Zipmex raised $41 million from Bank of Ayudhya, Thailand’s fifth largest bank, media companies and venture capital funds.

In June 2022, The Block announced its plans to acquire Coinbase’s bitcoin exchange. As a result, according to sources, the parties agreed on strategic investments.

According to media reports, Zipmex would raise $40 million in the Series B+, raising the valuation to $400 million.

Markus Lim, the company’s CEO and co-founder, described Coinbase as an “interesting partner” in a comment to Cointelegraph. At this stage the investment “makes more sense,” he said.

“Acquisition failed due to market conditions. They left many countries such as Turkey and Latin America. “Coinbase is a great strategic partner.”

The source of the publication claimed that Zipmex has lent “approximately $100 million” to Babel Finance, one of Asia’s largest crypto lenders. In mid-June, the latter announced the suspension of payments and withdrawals due to lack of liquidity.

The company later denied the bankruptcy news. On July 19, it was learned that Babel Finance had hired lawyers to advise on restructuring.

Hedge fund Three Arrows Capital, crypto lending platforms Celsius Network and Vauld also had problems.

Cointelegraph’s interlocutor did not rule out that Zipmex could face similar challenges. According to him, Babel “did not default, and that’s a $100 million gap.”

In response to a request from the broadcast, Lim said the company “did not comment on the rumours.”

Recall that Mike Novogratz, head of Galaxy Digital, said that “greed, ignorance, and stupid risk management” led to the crypto market crash.

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