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Zipmex Confirms $53M Exposure to Celsius and Babel Finance

Finance

coinfomania.com 21 July 2022 23:04, UTC
  
Reading time: ~2 m

Singapore-based crypto exchange Zipmex declared on Thursday that it has a total of $53 million worth of funds in exposure to crypto lenders Celsius Network and Babel Finance. The latest development comes barely a day after Zipmex halted withdrawals of users’ funds on Wednesday.

Zipmex Declares $53M Exposure to Crypto Lenders

According to an official statement, Zipmex noted that it had $5 million with Celsius Network and $48 million with Babel Finance. Both companies in question suspended the withdrawals of users’ funds in June, and Celsius filed for bankruptcy protection last week.

Zipmex stated that it is in communication with these firms to settle the matter, after indicating its plan to dismiss the debt from Celsius. The company further stated its plan to regain its financial grounds, where it said:

“For now, Zipmex is exploring all available channels including fundraising, legal action, and restructuring.”

Meanwhile, Zipmex also revealed that withdrawal services have resumed in its trade wallets, while trading services and transfers from ZWallet to trade wallets are yet to resume.

Thai SEC Questions Zipmex

Notable for its dominance in Thailand, Zipmex’s funds’ freeze action drew the attention of the Thai Securities and Exchange Commission (SEC).

Thailand’s SEC stated on Thursday that it had sent a letter to Zipmex requesting tangible information about the whole event. Some of the information included the details on users’ funds under its assets-under-management (AUM) and some other of its services in Thailand.

“[Thai SEC requests for] evidence of the digital assets of customers deposited in the ZipUp program to invest in various platforms, especially Celsius and Babel Finance; as usual and provide a service system to contact customers and manage complaints sufficiently and efficiently,” the statement said.

Crypto Firms Affected by Prolonged Crypto Winter

Zipmex, which made headlines on Wednesday, has now joined a bunch of companies that have become affected by the prolonged crypto winter.

Since Celsius Network halted the withdrawals of users’ funds in early June, many other companies have followed suit, such as CoinFLEX, Vauld, and crypto broker Voyager Digital.

Another affected company is crypto hedge fund Three Arrows Capital (3AC), which is currently insolvent and has notably affected other companies with exposure to it, with Voyager as an example.


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