Zipmex says it will eliminate $5 million in Celsius exposure.
Southeast Asia-focused crypto exchange Zipmex said it will resume withdrawals on Thursday after suspending it a day earlier and is working to settle $53 million in funds for companies for Babel Finance and Celsius crypto loans.
Zipmex said it is in talks with Babel Finance, which suspended withdrawals in June, to settle its $48 million settlement with the crypto services firm, while a spokesperson for Babel Finance said it is actively working with Zipmex to avoid damage to customers.
Zipmex says it will eliminate $5 million in Celsius exposure.
“Zipmex is exploring all existing channels including fundraising, regulatory action and restructuring,” the company said in a statement.
The company said in a tweet on Wednesday that it had suspended withdrawals, with a Thai branch executive citing liquidity difficulties at Babel Finance and Celsius as factors behind it. after this move.
Withdrawals in Thailand resumed late Wednesday, with the exception of transfers from one investment product, while the company said withdrawals would resume in other regions by the end of Wednesday. Five.
Zipmex, which says it operates out of Singapore, Thailand, Indonesia and Australia, is the latest in a string of global crypto players to suffer after a sharp sell-off in markets that began in May with the demise of two paired tokens, Luna and TerraUSD.
The company’s tweet Wednesday cited “volatile market conditions and resulted in financial hardship for our key business partners” for the suspension.
US-based company Celsius filed for Chapter 11 protection on July 13, listing a $1.19 billion shortfall on its balance sheet.
Celsius did not immediately respond to a request for comment.
Celsius and Babel Finance are among a number of crypto players that have fallen on hard times in recent months.
Singapore-based Three Arrows Capital crypto fund is in a liquidation phase, fueling expectations in Singapore’s crypto sector for further restructuring and tighter regulatory oversight.
A spokesperson for the Monetary Authority of Singapore said the regulator is evaluating Zipmex’s application for a cryptocurrency service license and will engage with the company on recent developments, including the decision to suspend withdrawals, as part of that review. Zipmex is operating on a waiver pending information on its application.
Zipmex said it was working with the Securities Exchange Commission of Thailand, while the Indonesian government said it would require Zipmex Indonesia to ensure that its crypto asset trading is protected from the effects of the situation. Figure.
