Breaking: Zipmex halts withdrawals as CEO denies financial trouble rumors

The CEO of Thai crypto exchange Zipmex denied rumors of financial trouble moments before the group announced it would suspend withdrawals on the platform.

Thai cryptocurrency exchange Zipmex has suspended withdrawals on its platform following a “contest of circumstances” beyond its control. Cointelegraph reports that Zipmex may be in trouble has been dismissed as "rumors" by CEO and co-founder Marcus Lim following the failed acquisition of the Thai exchange by Coinbase.

Due to a combination of circumstances beyond our control, including volatile market conditions, and the resulting financial difficulties for our major trading partners, in order to maintain the integrity of our platform, we would be suspending withdrawals until further notice.

Coinbase made an offer to acquire Thai cryptocurrency exchange Zipmex in early Q1 2022. On June 9, the acquisition fell through. Instead, Coinbase made a "strategic investment" in the company - the amount was not disclosed.

Lim told Cointelegraph that while Coinbase is an interesting partner, "an investor makes more sense at this point." He explained that the group is reaching out to a number of different parties at all times, citing the bear market as the reason Coinbase pulled out of the acquisition:

"The acquisition failed due to market conditions. They pulled out of many countries around the world, such as Turkey and Latin America. Coinbase is a great strategic partner for the company."

According to The Block, Zipmex is working on a Series B+ raise that could value it at $400 million. Cointelegraph reported that Zipmex had compliant operations in Thailand, Indonesia, Singapore and Australia. In August 2021, Zipmex's user base reached 200,000, as it recorded gross trading volume of over $1 billion since its launch in late 2019.

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