Crypto exchange Zipmex has updated to enable withdrawals from its trade wallet and has stated that it is “actively working to resume trading” a day after freezing all client funds. Also, the company confirmed significant financing exposure to Babel Finance and Celsius.
Zipmex disclosed in a blog post that it has a $48 million and a $5 million exposure to troubled crypto lenders Babel Finance and Celsius, respectively.
On July 20th, Zipmex halted withdrawals citing volatile market conditions.
Shortly after, the Thai Securities and Exchange Commission (SEC) inquired the exchange to explain why it was suspending withdrawals and other services. The regulator also wanted to know if the company used customer deposits to invest in Celsius and Babel Finance.
“The SEC is well informed of the situation and we are cooperating fully with them. We will continue to engage in open dialogue with the community, regulators, and all impacted parties,” the Zipmex statement read.
According to the blog post, the exchange is in talks with Babel to resolve the situation, and because its exposure to Celsius was minimal, it intends to write it off against its own balance sheet.
While deposits and withdrawals are now available in the Zipmex trade wallet, ZipUp accounts will remain disabled until further notice.
It went on to say, “Zipmex is exploring all available channels including fundraising, legal action, and restructuring.”
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