The Zipmex cryptocurrency exchange on Wednesday blocked users from taking direct custody of their coins, citing volatile market conditions.
"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 exchange announced on Twitter.
Several crypto platforms and lending firms, including Celsius Network and Babel Finance, have taken similar steps in recent weeks, blaming market turbulence and resulting counterparty risks. Early this month, Celsius filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York.
Established in 2018, Zipmex offers crypto trading and investment services in Thailand, Indonesia, Singapore and Australia.
Last year, the exchange raised $41 million with an investment from the Bank of Ayudhya, one of Thailand's largest banks. As of June, Coinbase had reportedly agreed to make a strategic investment in Zipmex, and the Singapore-based entity was working on a Series B+ funding round projected to raise its valuation to $400 million.
Despite this, Coinbase confirmed to CoinDesk Wednesday afternoon that they have no investment in Zipmex.
UPDATE (July 20, 19:38 UTC): Adds Coinbase comment whether they've invested in Zipmex.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.