Last Updated on September 25, 2022 by Bitfinsider

Zipmex, a Southeast Asia-focused cryptocurrency exchange, said it would resume withdrawals on Thursday after suspending them the day before, and that it was working to address its $53 million exposure to crypto lenders Babel Finance and Celsius.

Zipmex said it was in talks with Babel Finance to resolve its $48 million exposure to the crypto services firm, while a Babel Finance spokesperson said the company was actively working with Zipmex to avoid customer losses.

Zipmex said it would write off its $5 million Celsius exposure.

“Zipmex is exploring all available channels,” the company said in a statement. “These include fund raising, legal action, and restructuring.”

The company announced the suspension of withdrawals in a tweet on Wednesday, with an executive from its Thai affiliate citing liquidity issues at Babel Finance and Celsius as the reason.

Withdrawals in Thailand resumed late on Wednesday, with the exception of transfers from one investment product, and the company said withdrawals in other regions would resume later on Thursday.

Zipmex, which claims to operate in Singapore, Thailand, Indonesia, and Australia, is the latest in a long line of crypto players to face difficulties in the aftermath of a sharp sell-off in markets that began in May with the collapse of two paired tokens, Luna and TerraUSD.

According to a spokesperson for the Monetary Authority of Singapore, the regulator is reviewing Zipmex’s application for a crypto services licence and will consult with the company on recent developments, including the decision to suspend withdrawals, as part of that review. Zipmex is operating under an exemption while waiting for a response to its application.

Zipmex stated that it was cooperating with the Thai Securities Exchange Commission, while the Indonesian government stated that it would request Zipmex Indonesia to ensure that its crypto asset trading is protected from the effects of the situation.

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