Zipmex Resumes Withdrawals, Discloses $53M Exposure to Babel and Celsius

Less than 24 hours after the Southeast Asia-based cryptocurrency exchange Zipmex paused customer withdrawals citing volatile market conditions, the company announced plans to resume full operations.

Zipmex Resumes Withdrawals

In a tweet on Thursday, Zipmex noted that deposits and withdrawals are now open to users in its trade wallet. However, ZipUp accounts will remain disabled until further notice. The exchange stated that it plans to resume trades soon.

The security of our customers is the number one priority at Zipmex and we strive to provide the most secure platform possible. For more info, reach out to our Customer Support Team over Live Chat – this is available 24/7.

— ZIPMEX (@zipmex) July 21, 2022

Thai SEC Queries Zipmex

Earlier today, the Thai Securities and Exchange Commission (SEC) asked the cryptocurrency exchange to clarify its decision to freeze customer withdrawals.

In an official press release on its website, the regulator demanded that Zipmex disclose the value of customer assets under custody. It also asked the company to “provide evidence of the digital assets of customers deposited in the ZipUp program to invest in various platforms.”

The watchdog also wanted to know if Zipmex had ties to the troubled crypto lending platforms Babel Finance and Celsius.

Zipmex Discloses $53M Exposure

In addition to the announcement of resuming withdrawals, Zipmex revealed that it has a $48 million and $5 million exposure to trouble crypto lending platforms Babel Finance and Celsius Network, respectively.

In an official statement, the exchange noted that it is currently in talks with Babel to resolve the situation effectively.

“We spoke with Babel advisors recently and we are currently evaluating our options based on those discussions. Dialogue remains open, and we remain committed to resolving this situation… Our exposure to Celsius was minimal as such we were intending to write this off against our own balance sheet.

We are actively engaging with Celsius to resolve this situation. The SEC is well informed of the situation and we are cooperating fully with them. We will continue to engage in open dialogue with the community, regulators, and all impacted parties,” Zipmex wrote.

Additionally, the statement pointed out that Zipmex is exploring all available channels, including fundraising, legal action, and restructuring.