Thailand’s Securities and Exchange Commission (SEC) has launched a public investigation to confirm the impact of losses incurred by customers following the suspension of withdrawals on the Zipmex platform.

Users are requested to fill out a form explaining their expertise.

The direct investigative effort of the SEC with affected customers is coming shortly after issuing a letter to the alternate, seeking clarification on how customers’ funds held in its custody have been managed. The regulator additionally requested data on Zipmex’s publicity to Celsius and Babel Finance.

It was reported that the crypto alternate, Zipmex had paused withdrawal requests for purchasers within the South Asian area, together with Thailand, on July 20, due to unstable market situations. It nonetheless resumed withdrawals the next day.

Zipmex’s Liquidity Crisis

The ripple impact of the crypto winter has led a number of crypto firms to pause person actions, face liquidation threat, and even file for chapter.

Zipmex’s present problem is precipitated by monetary difficulties confronted by some of its companions, together with Celsius and Babel Finance.

Following excessive market situations, Celsius suspended withdrawals, swaps, and transfers of property on its platform on June 13, 2022. Only a couple of month later, it formally filed for Chapter 11 bankruptcy leaving a number of buyers together with Zipmex at a terrific loss. 

In an analogous trajectory, Babel Finance on June 17, 2022, announced a  short-term suspension of redemptions and withdrawals from its platform. The alternate is presently exploring debt restructuring choices.

These liquidity pressures resulted in Zipmax having a monetary publicity to Babel and Celsius of $48 million and $5 million, respectively. For Celsius, its $5 million mortgage will seemingly be written off following its chapter, however discussions are nonetheless ongoing with Babel on its $45 million mortgage.

An unfavorable flip of occasions has led the as soon as flourishing alternate to be struggling for survival. As of June 2022, Zipmex was valued at $52 million from Series B funding of $41 million in September 2021 and $11 million in March 2022. Talks have been already underway with Coinbase as of June 9, 2022, for strategic investments that might worth the alternate at $400 million. However, the market situations modified the narrative.

A doable buyout in view

Amidst the liquidity disaster, the alternate is actively exploring all doable choices to survive the crypto winter. In a current publish, Zipmex announced that it’s in dialogue with a number of buyers for a doable buyout. It said it has obtained a memorandum of understanding with an unnamed purchaser however didn’t present particulars.





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