According to August 1, cryptocurrency platform Zipmex, which suspended withdrawals on July 20, is gradually resuming withdrawals from its Z wallet. blog post.
The company resumed withdrawals from trade wallets on July 22nd. The company’s Z wallet will be used for earning and receiving bonuses, while the trade wallet will be used for trading and withdrawals.
After the situation stabilizes, Zipmex is ready to release 100% of unaffected tokens in users’ Z wallets, Zipmex said.
Starting August 2nd, Zipmex will release all Solana (SOL) tokens, debiting users’ Z wallets and depositing them into their respective trade wallets. According to the blog post, users will be able to withdraw their tokens once they are deposited into the Trade wallet.
Additionally, on August 4th, Zipmex will release all Ripple (XRP) tokens, followed by Cardano (ADA) on August 9th. Said.
Trouble with Zipmex
Along with a timeline for the partial withdrawal’s reopening, Zipmex provided insight into how it landed in hot water.
The company’s ZipUp+ account allowed users to earn interest in cryptocurrencies. Customer funds deposited into ZipUp+ accounts were deposited by Zipmex into various lending platforms, including the now-defunct Celsius Network and troubled Babel Finance, Zipmex said in a blog post.
After Celsius declared bankruptcy in mid-July, Zipmex wrote off its $5 million exposure to lenders and absorbed the losses, the company said.
Zipmex added that it is in regular contact with Babel and has “confidence” that Babel can resolve the situation in the short term. However, on July 20, contrary to previous discussions, Babel informed Zipmex that resolving the situation would take time and was uncertain, according to the blog.
As a result, Zipmex notified the Thai Securities and Exchange Commission (SEC) of the situation and suspended withdrawals, the lender said.
Zipmex had $48 million exposure to Babel. Babel reportedly lost $280 million in proprietary trading of user funds and is looking to raise up to $300 million.
The company said it had conducted “extensive due diligence” on both Celsius and Babel, covering all aspects including business, legal, compliance, stability and risk. The firm justified its decision to entrust funds to Celsius and Babel, saying both companies are backed by “very reputable investors.”
Celsius is backed by the likes of WestCap and Tether, while Babel counts Circle Ventures, 10T Holdings and Dragonfly Capital among its investors.
Debt moratorium is not bankruptcy
Zipmex has revealed that none of its subsidiaries have filed for bankruptcy. However, it has applied for a moratorium on its debt to protect it from legal action from its creditors.
According to the moratorium process, Zipmex’s creditors have until Aug. 5 to submit statements to the court, and Zipmex Singapore expects to file its documents by Aug. 12, the company said.
A Singapore court hearing on the moratorium is scheduled for August 15, according to the blog.
The company added:
“…that there is no intention to hide the facts and that everything is being done in accordance with court proceedings.
We will notify all customers, media and stakeholders of any developments.
road ahead
Zipmex said it is working to recover assets from Babel Finance and is having “advanced financing conversations” that will allow it to fully resume Z-wallet transfers. The company added that it had spoken with “several large reputable investors” and had signed memorandums of understanding with two of them.
Zipmex and its investors are accelerating due diligence to expedite resolutions for customers, the company said. He added that existing Zipmex shareholders have additionally invested in Zipmex Token (ZMT). According to the blog post, the company is developing his ZMT along its roadmap.
