The decision comes shortly after the platform resumed withdrawals from some altcoins last week.
Shortly after resuming withdrawals for some altcoins, Asian exchange Zipmex announced that it will reduce withdrawal amounts for Bitcoin and Ethereum later this week.
The statement comes after the platform assured its users on August 4 that it is “committed to resuming all services on the Zipmex platform as soon as possible and to rebuilding trust and easing customer concerns.”
Sixteen Destined for Release on August 11
Zipmex, a cryptocurrency exchange with offices in Singapore and Thailand, announced a temporary suspension of client withdrawals from the platform on July 20. While the exchange blamed falling crypto asset prices and loan defaults by industry heavyweights for the decision, it said it will resume withdrawals within 24 hours of suspending operations.
Yesterday, Zipmex twitted that it, “is planning to release a specific amount of ETH and BTC on 11 and 16 August respectively. We’re working hard to release the balance of Z Wallet holdings ASAP.”
Now, despite the exchange’s battle with Babel and Celsius, it intends to release a specified amount of ETH and BTC on August 11 and 16, respectively.
Previously, on August 2, 100% user SOLs were released, 100% XRP was announced on August 4, and Zipmex said it will make 100% ADA available on August 9, 2022. Stablecoins, on the other hand, will remain inaccessible for the time being.
Meanwhile, in Singapore, Zipmex has filed for bankruptcy protection to address its financial concerns by placing a moratorium on five of its businesses. While the hearing will take place on August 15, it is crucial to reiterate that Zipmex has raised a total of $62.9 million in investment over the course of 6 rounds. According to Crunchbase, Coinbase and B Capital Group were the most recent investors.
That said, co-founder Akalarp Yimwilai also stated on Twitter last month that “the main goal at this stage is to raise funds and open Z Wallet as soon as possible.”
Will the Singapore Court follow the Vauld Path?
Last week, the Singapore High Court granted troubled cryptocurrency exchange Vauld a three-month moratorium period. As a result, the corporation will be effectively protected from any potential legal action by creditors during this time.
Therefore, a similar route for Zipmex will allow the platform to resolve its liquidity issues and re-enable its Z wallet.
It is worth remembering that Zipmex Asia Pte Ltd, Zipmex Pte Ltd, Thailand-based Zipmex Company Limited, PT Zipmex Exchange Indonesia, and Zipmex Australia Pty Ltd are among the companies seeking assistance under Section 64 of the Insolvency Act, Singapore Restructuring and Dissolution of 2018.
Under Singapore law, these businesses should be given an automatic 30-day moratorium or until the court issues a ruling.
By Audy Castaneda
