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July 25, 2022

Thailand’s regulator will probe Zipmex users’ losses

A cryptocurrency exchange called Zipmex, which mostly serves Southeast Asian countries, suddenly stopped accepting withdrawals, which affected many investors. However, the Securities and Exchange Commission of Thailand has opened a probe into this issue.

Reuters reported that Thailand’s regulator and law enforcement have started their investigation to determine any possible damages incurred by the general population. The SEC is reportedly soliciting input from affected Zipmex consumers through an online forum, it was said. Additionally, traders are questioned about how the exchange’s problem has impacted them.

The primary countries where Zipmex offers services are Thailand, Singapore, Australia, and Indonesia. On July 20, the site ceased allowing withdrawals. It was said that the exchange took this measure to preserve its integrity because of the unstable market circumstances and the financial challenges of its business partners.

According to the article, representatives of Zipmex said that they would be prepared to comply with the regulator’s request. It further said that it communicates often with government organizations. This information is released concurrently with the Thai lender SCB X Pcl’s declaration that it would extend the term for doing due diligence on its $537 million investment in the cryptocurrency exchange Butkub.

The withdrawal service did, however, start up again in Thailand the same evening. While it took longer in other nations. In a letter dated July 21, Zipmex said that it was extending its maintenance window and that trading would be suspended until further notice.

The platforms then revealed that they have exposure to Babel Finance and celsius of $53 million. It said that it was working to settle its $48 million liability with the cryptocurrency loan company and was in continuous touch with Babel Finance. Babel’s representative said that they were proactively addressing the problem to prevent any user losses.

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Due to the severe fall of the cryptocurrency market, Zipmex is not the only cryptocurrency company to have difficulties of this kind.