The recent crypto winter plunged some crypto firms into insolvency. Also, the collapse of Terra algorithmic stablecoin and its native token, LUNA, aided the devastating effect of the bearish trend. As a result, almost all the assets in the crypto space experienced a massive decline in their prices and values. The overall events brought billions of dollars on the part of investors.
Though many firms were affected by the impact of the bearish markets, some felt more of the blow. The majority are crypto lending firms that offer high rates in their services. Hence, they had to devise ways to stay afloat through the raging storm of liquidation.
Some of the struggling companies had to freeze their users’ accounts, making it impossible for them to access their funds. This created more tension in the crypto space as some investors started losing confidence in the crypto industry and its potential in the long term.
One of the firms that received a severe blow from the bearish trend is Zipmex, a cryptocurrency exchange based in Thailand. The company is reportedly moving to allow users access to some of its platform funds.
According to the report, it would enable BTC and ETH tokens to be withdrawn within a few days. Also, Zipmex had access to some altcoins’ withdrawals last week. These include Cardano (ADA), Solana (SOL), and Ripple (XRP).
Zipmex halted withdrawal from its platform toward July ending because of the crypto market volatility. However, the firm mentioned that the platform would remain closed for an unknown period. It cited its reason as the prevailing bearish market trend, which is beyond its control.
Contrary to the expectations of many, the firm is reversing its transaction pause on the platform. Users can withdraw some Bitcoin (BTC) tokens and Ethereum (ETH). But the period would last from August 11 to August 16. Also, the withdrawal access is only for its Z Wallet clients, which constitute about 60% of its customer base.
Zipmex Sort For Assistance On Crypto From Other Organizations
Before now, there have been rumors that Zipmex is having private deliberations with several organizations concerning its pending liquidity issues. Also, many people believe that some firms are offering Zipmex assistance to survive.
Zipmex laid down numerous applications for its bankruptcy. As a result, they were under Section 64 of Singapore’s Insolvency, Restructuring and Dissolution Act 2018. The action aimed to deter creditors from laying claims within six months.
Besides Zipmex, other crypto firms suffered the same fate. Three Arrows Capital, an Asian-based crypto lending platform, went bankrupt in June during the bearish trend.
The firm is said to be owing up to $3.5 billion to 27 different entities in the industry and couldn’t repay its users. Finally, it received a liquidation order from a court in the British Virgin Islands.
Featured image from Pixabay, chart from TradingView.com