Zipmex crypto exchange is set to reopen customer withdrawals after closing a deal with a venture capital firm last month.
The exchange was embroiled in a credit crunch last year due to market collapse caused by the implosion of Terra and its algorithmic stablecoin UST.
Zipmex found itself in trouble, along with several other firms, and issued two loans to Babel Finance and Celsius Network worth $53 million, which have yet to be repaid.
The rescue deal, which was in “advanced talks” in November, has now been signed with the venture firm, which has been providing money in tranches.
Eligible creditors are required to fill out a form with the amount owed by February 21, and the company’s scheme manager, investment firm KordaMentha, aims to finalize withdrawals by March 21.
The news of Zipmex’s credit crunch last year was a shock to the cryptocurrency community in Southeast Asia. However, with the reopening of customer withdrawals, it seems that the exchange is moving towards recovery. The exchange has been working with investors and creditors to resolve the issue and ensure the safe return of funds to its customers.
Zipmex’s recent success has been attributed to its ability to provide a user-friendly platform for trading crypto as well as its strict adherence to regulatory compliance.
The exchange has also been praised for its security measures, which include multi-factor authentication, biometric verification, and cold storage of digital assets.
However, the exchange is facing a probe from Thailand’s securities regulator over whether it was operating without permission. Despite this setback, the exchange remains committed to operating within regulatory boundaries and working with authorities to resolve any issues.