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Asia-Focused Crypto Platform Zipmex Resumes Withdrawals

Zipmex is the latest in a string of crypto players globally to run into difficulties following a sharp selloff in markets that started in May


Singapore-based Zipmex has become the latest crypto crash casualty, as it filed for bankruptcy protection in the city-state.
Zipmex solicitors submitted five applications to authorities in Singapore on July 22 seeking moratoriums to prohibit legal proceedings against the group for up to six months, the cryptocurrency exchange said. File photo: Reuters.

 

Zipmex, an Asia-focused cryptocurrency exchange, planned to allow customers to make withdrawals by Thursday (July 21) after a one-day suspension caused by exposure to struggling crypto platforms Babel Finance and Celsius Network.

The platform, Zipmex, which operates in Singapore, Thailand, Indonesia and Australia, is the latest in a string of crypto players globally to run into difficulties following a sharp selloff in markets that started in May.

Zipmex said it had a combined exposure of $53 million to Babel and Celsius, of which Babel accounted for $48 million.

The exchange said it was in talks with Babel, which suspended withdrawals in June, but planned to write off its $5 million exposure to Celsius.

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

Withdrawals in Thailand resumed late on Wednesday, except for transfers from one investment product, while the company said withdrawals would be restored in other Southeast Asia regions and Australia later on Thursday.

US-based Celsius filed for Chapter 11 protection on July 13, listing a $1.19 billion deficit on its balance sheet.

 

  • Reuters, with additional editing by George Russell

 

 

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George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.