The Securities and Exchange Commission (SEC) of Thailand has started publishing Investigation To see the impact of the loss suffered by the user after the withdrawal was stopped on the Zipmex platform.
The user shape Explain their experience.
The SEC’s direct investigation efforts into affected users will take place shortly after issuing the letter to the exchange. Ask Clarification of how the stored user’s funds are managed. Regulators also requested information on Zipmex’s exposure to Celsius and Babel Finance.
It was report Zipmex, a cryptocurrency exchange, suspended requests for withdrawal from customers in South Asia, including Thailand, on July 20 due to unstable market conditions.But it resumed withdrawal the next day.
Zipmex Liquidity Crisis
Due to the winter spillover of cryptocurrencies, some cryptocurrency companies have suspended user activity, faced liquidation risk and even filed for bankruptcy.
Zipmex’s current challenges are posed by the financial difficulties faced by partners such as Celsius and Babel Finance.
Following extreme market conditions, Celsius pause Withdrawals, swaps, and transfers of assets on the platform on June 13, 2022. Only about a month later, I officially applied for Chapter 11. bankruptcy Several investors, including Zipmex, have suffered significant losses.
In a similar trajectory, Babel Finance on June 17, 2022 publication Temporary suspension of redemptions and withdrawals from the platform.The exchange is currently under investigation Debt restructuring option.
Due to these liquidity pressures, Zipmax had $ 48 million and $ 5 million in financial exposure to Babel and Celsius, respectively. In the case of Celsius, the $ 5 million loan could be amortized after bankruptcy, but discussions with Babel about the $ 45 million loan are still ongoing.
Due to the disadvantages, the once prosperous exchange struggled to survive. As of June 2022, Zipmex was valued at $ 52 million from Series B funding. $ 41 million September 2021 $ 11 million March 2022. Negotiations were already underway. Coinbase Strategic investment that could value a $ 400 million exchange as of June 9, 2022. But market conditions have changed the story.
Possibility of acquisition in the field of view
In the liquidity crisis, exchanges are actively exploring all possible options to survive the crypto winter. In a recent post, Zipmex announced that it is discussing potential acquisitions with multiple investors.this He said he had obtained a memorandum of understanding with an unnamed purchaser, but did not provide details.
📢 Important notice 📢
Conversations with various stakeholders are much more advanced. One of those parties provided the terms of the MOU, including confidentiality, to allow due diligence to begin. #zipmex— ZIPMEX (@zipmex) July 24, 2022
