Crypto woes rise as Celsius, Babel links hit another firm
Zipmex, a cryptocurrency exchange that operates in markets such as Singapore and Thailand, halted withdrawals as the fallout from a series of defaults spreads further throughout the digital-assets industry.
The Asian platform is the latest to encounter financial difficulties stemming from dealings with troubled crypto lenders Babel Finance and Celsius Network Ltd. Zipmex has $48 million of exposure to Babel and $5 million with Celsius, it said on its Facebook page on Thursday.
“Zipmex is exploring all available channels including fundraising, legal action and restructuring,” the company said in the Facebook post.
The exchange is in talks with new investors to raise funds for a “bailout”, Zipmex (Thailand) chief executive Akalarp Yimwilai said in a video on the company’s YouTube channel that has since been removed.
Zipmex joins other struggling crypto firms with operations in Singapore, including Three Arrows Capital and Vauld, even as regulators in Singapore tighten rules to ring-fence retail investors from volatile digital assets. The Monetary Authority of Singapore said this month it will broaden cryptocurrency regulations to cover more activities amid a series of business failures in the industry.
“Babel Finance is actively working with Zipmex on possible solutions and will try to avoid customer’s losses as much as possible,” a spokesperson for the Hong Kong-based company said in a WeChat message.
Zipmex has a licence for digital-asset trading from the Securities and Exchange Commission of Thailand, according to its website. In Singapore, the platform holds an exempted payment service provider permit, rather than a full licence under the central bank’s new regime for cryptoasset firms.
Zipmex cited “volatile market conditions and the resulting financial difficulties of our key business partners” as reasons for its decision. The company later eased the withdrawals halt for users of some products in Thailand.