Zipmex Resuming Z Wallet Withdrawals—But Just for SOL, XRP, ADA

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Decrypt
17w ago2022-08-02

Zipmex is re-enabling withdrawals for 100% of user funds stored in its Z Wallet—but only for a select few altcoins.

In a detailed statement released Tuesday, the South Asian cryptocurrency exchange said it will make available all users’ SOL balances today, all XRP balances on Thursday, and all ADA balances on August 9.

All three assets are currently top 10 cryptocurrencies by market cap, but they were nevertheless “unaffected” amid Zipmex’s liquidity crisis last month. By contrast, it remains unclear when customers may regain access to market-leading assets like Bitcoin, Ethereum, and stablecoins.

“We are working to ensure that we are in full compliance as we start to release some of these tokens into your Trade Wallet,” Zipmex said.

Zipmex abruptly froze all withdrawals on July 20 after encountering financial issues with so-called “key business partners.” It then resumed withdrawals and activity within certain areas of its platform the following day, such as its Trade Wallet and NFT platform. Its Z Wallet platform, however, which contains the bulk of customers’ funds, stayed frozen.

The company also revealed the identities of its troubled “partners”: Babel Finance and Celsius. Zipmex was exposed to each, respectively, for $48 million and $5 million, the latter of which filed for bankruptcy during a whirlpool of industry contagion beginning last month.

After being drawn into the storm, Zipmex filed for bankruptcy protection on July 22 in Singapore. It is now working through liquidity issues and forming a restructuring plan.

In Tuesday’s statement, the firm specified it is working on seeing its assets restored from Babel Finance. “Secondly, we are in advanced  fundraising conversations which will allow us to re-enable Z Wallet transfers,” the statement continued.

The company also claims to be in conversation with “multiple reputable, and large-scale investors,” signing a Memorandum Of Agreement with two of them. One of the firm’s shareholders is said to have invested further into Zipmex token (ZMT), on which development is “moving ahead.”

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