Zipmex suspends withdrawals as CEO dismisses concerns of financial difficulties

Just seconds before the group stated it would suspend withdrawals on the network, the CEO of Thai crypto exchange Zipmex dismissed allegations of financial problems.

Zipmex, a Thai cryptocurrency exchange, has halted withdrawals on its platform due to a “combination of factors” beyond its control. Following Coinbase’s failed takeover of the Thai exchange, CEO and co-founder Marcus Lim denied suggestions that Zipmex was in jeopardy as “rumors.”

Coinbase made an offer to buy Thai cryptocurrency exchange Zipmex in the first quarter of 2022. The acquisition fell through on June 9. Coinbase instead made a “strategic investment” in the company, the value of which has not been disclosed.

While Coinbase is an intriguing partner, Lim believes that “an investor makes more sense at this stage.” He explained that the group communicates with a variety of different parties at any given moment, noting the bear market as the reason Coinbase declined the acquisition:

“The acquisition fell through due to market conditions. They’ve pulled out in many countries around the world such as Turkey and in Latin America. Coinbase is a great strategic partner to the business.”

Zipmex is preparing to raise $400 million in a Series B+ round. According to Cointelegraph, Zipmex has compliant operations in Thailand, Indonesia, Singapore, and Australia. Zipmex’s user base hit 200,000 in August 2021, and it has reported over $1 billion in gross transaction volume since its start in late 2019.

According to press releases from Zipmex, the company’s Thai affiliate holds a digital assets Exchange license and a brokerage license from Thailand’s Ministry of Finance, and the organization is supervised by the Securities and Exchange Commission.