Zipmex stated that it is working to recover funds from Babel Finance and has signed a memorandum of understanding with two investors to fully restore withdrawals.
On July 22, the company resumed withdrawals from its Trade wallet. The Z wallet is used by the company to receive earnings and bonuses, while the Trade wallet is used for trading and withdrawal.
After resolving the situation, Zipmex plans to release 100 percent of unaffected tokens in users’ Z wallets, according to the company.
Beginning August 2, Zipmex will release all Solana (SOL) tokens, debiting them from users’ Z wallets and crediting them to their respective Trade wallets. Users can withdraw their tokens once they have been credited to their Trade wallets.
Furthermore, on August 4, Zipmex will release all Ripple (XRP) tokens, followed by Cardano (ADA) tokens on August 9. According to the company, all XRP and ADA tokens will be credited to users’ Trade wallets for withdrawal.
Zipmex’s issues
Along with a timeline of the partial withdrawal resumption, Zipmex explained how it got into trouble. Users of the ZipUp+ account could earn interest on cryptocurrencies.
Zipmex deposited customer funds deposited into ZipUp+ accounts into various lending platforms, including the now-bankrupt Celsius Network and the embattled Babel Finance
Zipmex said that after Celsius declared bankruptcy in mid-July, it wrote off its $5 million exposure to the lender and absorbed the loss. Zipmex also stated that it was in regular contact with Babel and was “confident” that Babel would be able to resolve the situation quickly. However, contrary to previous discussions, Babel informed Zipmex on July 20 that the resolution to the situation would be lengthy and uncertain, according to the blog.
To read our blog on “Solana sued for ‘centralization, “security,’ and other reasons,” click here
