Zipmex, a crypto exchange, will start accepting withdrawals once it has exposed $53 million

The cryptocurrency exchange Zipmex, which focuses on Southeast Asia, announced that withdrawals would restart on Thursday following a halt the day before.

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A cryptocurrency exchange with a focus on Southeast Asia called Zipmex announced on Wednesday that withdrawals would resume on Thursday after being suspended the day before. It also stated it was attempting to address its $53 million exposure to bitcoin lenders Babel Finance and Celsius.

In order to address its $48 million exposure to the crypto services company, Zipmex claimed it was in talks with Babel Finance, which had blocked withdrawals in June. A Babel Finance spokeswoman stated the company was actively collaborating with Zipmex to prevent customer losses.

A $5 million exposure to Celsius would be written off, according to Zipmex.

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

In a tweet sent on Wednesday, the company announced that withdrawals had been banned. An executive of its Thai branch cited liquidity issues at Celsius and Babel Finance as the reason for the decision.

The company said withdrawals would be restarted in additional locations later on Thursday. Withdrawals in Thailand began late on Wednesday, with the exception of transfers from one investment product.

Following a dramatic market sell-off that began in May with the collapse of two paired tokens, Luna and TerraUSD, Zipmex, which claims to operate in Singapore, Thailand, Indonesia, and Australia, is the most recent in a long line of cryptocurrency businesses to experience troubles.

The suspension was justified by the corporation in a tweet on Wednesday by citing “volatile market conditions and the accompanying financial difficulties of our important business partners.”

On July 13, US-based Celsius said that company had a $1.19 billion shortfall on its financial sheet and had filed for Chapter 11 protection.

An inquiry for comment was not immediately answered by Celsius.

A number of cryptocurrency players have recently encountered challenges, including Celsius and Babel Finance.

Due to the insolvency of Singapore-based cryptocurrency fund Three Arrows Capital, the country’s cryptocurrency industry is anticipating additional restructuring and increased regulatory oversight.

According to a Monetary Authority of Singapore spokeswoman, the regulator is considering Zipmex’s application for a crypto services licence and will speak with the company about the most recent events, including the decision to halt withdrawals, as part of that evaluation. While it waits for a response to its application, Zipmex is functioning under a waiver.

The Indonesian government said it would ask Zipmex Indonesia to make sure that its trading in crypto assets is protected from the effects of the scenario, while Zipmex stated that it was collaborating with the Thai Securities Exchange Commission.