– Zipmex, a Southeast Asia-focused cryptocurrency exchange, has suspended withdrawals, citing “volatile market conditions and the resulting financial difficulties of our key business partners”.
– Zipmex Thailand CEO Akalarp Yimwilai told an online livestream that the local affiliate’s difficulties stemmed from problems at Singapore-based Zipmex Global, whose partners, including Babel Finance and Celsius, were experiencing liquidity problems.
– Zipmex Global and its CEO did not immediately respond to requests for comment.
– The relationship between Zipmex Global and Zipmex Thailand was not immediately clear. Akalarp said Zipmex Thailand had resumed operations apart from transactions linked to one investment product.
– U.S.-based Celsius did not immediately respond to a request for comment sent outside U.S. office hours. The company filed for Chapter 11 protection on July 13, listing a $1.19 billion deficit on its balance sheet.
– Crypto financial services provider Babel Finance suspended withdrawals in June. The company did not immediately comment on Akalarp’s remarks.
– The two are among several crypto players that have fallen into difficulties in recent months.
– Singapore-based crypto fund Three Arrows Capital is in liquidation, prompting expectations in Singapore’s crypto sector of further restructuring and greater regulatory scrutiny.
– The Monetary Authority of Singapore had no immediate comment on Zipmex’s situation.
– The Thai Securities and Exchange Commission said it had asked Zipmex Thailand to explain its situation. Akalarp said it had done so.
– Indonesia’s government said it would ask Zipmex Indonesia to ensure that its crypto asset trading is safeguarded from the impact of the situation at Zipmex Global.
– In a separate incident, South Korean prosecutors said they had carried out search and seizure operations at local crypto-currency exchanges looking for evidence of potentially illegal practices related to Luna’s collapse.