Bankrupt Crypto Exchange Zipmex Resumed Withdrawals from Its Z Wallets

UTC by Bhushan Akolkar · 2 min read
Bankrupt Crypto Exchange Zipmex Resumed Withdrawals from Its Z Wallets
Photo: Depositphotos

As part of the recent unlocking, users can transfer the three altcoins – SOL, ADA, and XRP – from its Z wallet to the Trade wallets.

On Tuesday, August 2, bankrupt crypto exchange Zipmex announced that it has started withdrawals from its Z wallets. As a result, Zipmex has started releasing Solana (SOL), Cardano (ADA), and XRP tokens in user accounts.

Withdrawals from Zipmex Z Wallets

To understand it better, Zipmex provides its customers with two types of wallets: the Z Wallet and the Trade Wallet. The Z wallet is used for Zipmex services along with the receipt of earnings and bonuses. With the Trade Wallet, Zipmex holds the funds for trading as well as fiat currency. Last month on July 20, Zipmex paused all withdrawals on its platform.

The company had exposure to troubled crypto lenders such as Babel Finance and Celsius Network which necessitated the wallet freeze. Crypto lender Babel Finance owed Zipmex $48 million while Celsius Networks owed $5 million.

Interestingly, two days after July 20, when Zipmex paused withdrawals, it resumed withdrawals from the Trade Wallets. As per the current development, the three altcoins – SOL, ADA, and XRP – could be transferred from the Z wallets to Trade wallets. This will still leave Bitcoin (BTC), Ether (ETH) and stablecoins frozen in Z wallets.

Zipmex has promised customers that it would  “start to release some of these tokens [BTC, ETH, and stablecoins] into your Trade Wallet starting in the middle of August”.

Filing for Moratorium in Singapore

In order to maintain additional transparency with its customers, Zipmex also clarified its recent legal actions. The company has filed an application for a moratorium on debt in Singapore. The official announcement reads:

“Zipmex Pte. Ltd has filed for a Moratorium with the Singapore Court as advised by our legal counsel. This is also known as “an application for a moratorium on debt”. The effect of this Moratorium is to provide the Company with sufficient time to address problems and find a solution which will lead to the best customer outcomes”.

As part of the moratorium process, Zipmex creditors will be able to file documents with the court through August 5. Furthermore, Zipmex also stated that it is currently working with Babel Finance over the return of Zipmex’s funds. Additionally, it signed an MoU with two shareholders to receive additional investments from the current shareholder.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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