Thailand’s Securities and Trade Fee (SEC) has launched a public investigation to establish the influence of losses incurred by customers following the suspension of withdrawals on the Zipmex platform.
Customers are requested to fill out a type explaining their expertise.
The direct investigative effort of the SEC with affected customers is coming shortly after issuing a letter to the alternate, looking for clarification on how customers’ funds held in its custody had 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, on account of unstable market situations. It nevertheless resumed withdrawals the subsequent day.
Zipmex’s Liquidity Disaster
The ripple impact of the crypto winter has led a number of crypto corporations to pause person actions, face liquidation danger, and even file for chapter.
Zipmex’s present problem is precipitated by monetary difficulties confronted by a few of its companions, together with Celsius and Babel Finance.
Following excessive market situations, Celsius suspended withdrawals, swaps, and transfers of belongings on its platform on June 13, 2022. Solely a couple of month later, it formally filed for Chapter 11 chapter leaving a number of traders together with Zipmex at a fantastic loss.
In the same trajectory, Babel Finance on June 17, 2022, introduced a short-term suspension of redemptions and withdrawals from its platform. The alternate is at present 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 doubtless 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 Sequence B funding of $41 million in September 2021 and $11 million in March 2022. Talks had been already underway with Coinbase as of June 9, 2022, for strategic investments that would worth the alternate at $400 million. Nevertheless, the market situations modified the narrative.
A doable buyout in view
Amidst the liquidity disaster, the alternate is actively exploring all doable choices to outlive the crypto winter. In a current submit, Zipmex introduced that it’s in dialogue with a number of traders for a doable buyout. It acknowledged it has obtained a memorandum of understanding with an unnamed purchaser however didn’t present particulars.
📢 Vital Announcement 📢
Our conversations with varied events have progressed considerably. A kind of events has supplied phrases in an MOU which incorporates confidentiality obligations in order to have the ability to start Due Diligence. #zipmex— ZIPMEX (@zipmex) July 24, 2022