Thailand’s Securities and Exchange Commission (SEC) is concerned that some Zipmex users may have lost funds after the exchange briefly halted withdrawals and other services last week due to extreme market conditions.
Thai SEC launches online forum for Zipmex users
The regulator announced Monday that it is collaborating with law enforcement to collect data from Zipmex customers about how they were affected by the company’s decision to freeze users’ accounts. The SEC urged affected investors to submit their information through an online platform on the regulator’s website.
“In order to provide greater convenience to the affected people, the SEC has prepared a form for information/fact filling. The complaint process may be forwarded to the concerned agencies to assess the impact of going forward,” the watchdog wrote.
Zipmex suspends withdrawals
recall that cryptopotato It was reported last Wednesday that Zipmex halted withdrawals, citing volatile market conditions and financial issues with its trading partners. Following the suspension, many wondered whether the firm had exposure to other bankrupt firms such as Celsius and Three Arrows Capital.
However, Zipmex resumed deposits and withdrawals less than 24 hours later, allowing users to access their funds. But that didn’t stop Thailand’s security watchdog from going after the crypto exchange.
The SEC sent a letter to Zipmex, seeking reasons for the company to withhold withdrawals after receiving complaints from investors. The regulator requested the exchange to provide information about the value of the assets of the clients. In addition, the agency asked Zipmex if it had contact with beleaguered crypto lenders Babel Finance and Celsius.
Zipmex Confirms $53 Million Exposure
Soon after resuming withdrawals, the trading platform revealed that it had been financially exposed to both lenders. The exchange said the exposure amount is $53 million, with Babel Finance $48 million and Celsius $5 million outstanding.
Zipmex is currently in talks with Babel on how to resolve the issue. As for Celsius, the exchange intends to write off the exposure as bad debt, given that the amount involved is “minimum” and the crypto lender has gone bankrupt.
Meanwhile, recent reports have revealed that Zipmex is in discussions with “interested parties” on a potential deal. The exchange was reportedly on the verge of raising nearly $40 million in a Series B+ funding round before the crypto industry turned bankruptcy in June.
PrimeXBT Special Offer: Use this link to register and enter code POTATO50 to get up to $7,000 on your deposit.