ZipMEX Resumed Withdrawals After $53M Exposure To Celsius

ZipMex resumed withdrawals after a $53 million exposure to Celsius and Babel Finance but the Thai SEC questioned the decision to halt withdrawals as the exchange outlined other plans on how to resume them so let’s have a closer look at our latest cryptocurrency news.

Less than 24 hours after the Zipmex crypto exchange paused customer withdraws due to volatile market conditions, the company had plans to resume its operations fully. Zipmex resumed withdrawals and noted that they are open to users in the trade wallet but ZipUp accounts will still remain disabled until further notice. The exchange stated that it plans to resume the trades.

📢Important Announcement 📢

We are extending our maintenance period and will re-enable withdrawals and deposits for your Trade Wallet on 21 July 2022 at 18:00 (GMT+7). Trading will remain disabled until further notice. pic.twitter.com/2qCDzcyjdY

— ZIPMEX (@zipmex) July 21, 2022

The Thai Securities and Exchange Commission asked the exchange to clarify the decision to freeze the customer withdraws and on the website, the regulator demanded that Zipmex discloses the value of customer asset sunder custody and asked the company to provide evidence of the digital assets of the deposited funds in the Zipup program and invest in various other platforms.

The watchdog wanted to know if Zipmex has ties to the lending platform Babel and Celsius. In addition to the announcement, Zipmex revealed that it has $48 million and $5 million exposure to the trouble lending companies like Babel Finance and Celsius Network. In the statement, the exchange noted that it is talking with Babel to resolve the issue:

“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.”

The statement pointed out that Zipmex is exploring other channels as well like fundraising, legal action, and restructuring.