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Zipmex said it was in talks with Babel Finance, which suspended
withdrawals in June, to resolve its $48 million exposure to the
crypto services firm, while a Babel Finance spokesperson said it
was actively working with Zipmex to avoid customer losses.
Zipmex said it would 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.
The company had said in a tweet on Wednesday that it suspended
withdrawals, with an executive of its Thai affiliate citing
liquidity difficulties at Babel Finance and Celsius as factors
behind the move.
Withdrawals in Thailand resumed late on Wednesday, except for
transfers from one investment product, while the company said
withdrawals would be restored in other regions later on
Thursday.
Zipmex, which says it operates in Singapore, Thailand, Indonesia
and Australia, is the latest in a string of crypto players
globally to run into difficulties following a sharp sell off in
markets that started in May with the collapse of two paired
tokens, Luna and TerraUSD.
The company's tweet on Wednesday cited "volatile market
conditions and the resulting financial difficulties of our key
business partners" for the suspension.
U.S.-based Celsius filed for Chapter 11 protection on July 13,
listing a $1.19 billion deficit on its balance sheet.
Celsius did not immediately respond to a request for comment.
Celsius and Babel Finance 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.
A spokesperson for the Monetary Authority of Singapore said the
regulator was assessing an application for a crypto services
licence by Zipmex and would engage with the company on the
recent developments, including the decision to suspend
withdrawals, as part of that assessment. Zipmex is operating
under an exemption while it awaits word on its application.
Zipmex said it was cooperating with the Thai Securities Exchange
Commission, while Indonesia's government said it would ask
Zipmex Indonesia to ensure that its crypto asset trading is
safeguarded from the impact of the situation.
(Reporting by Chayut Setboonsarng and Juarawee Kittisilpa in
Bangkok, Stefanno Sulaiman in Jakarta and Chen Lin in Singapore;
Writing and additional reporting by Alun John; Editing by Shri
Navaratnam and Edmund Klamann)
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