Southeast Asia-focused cryptocurrency exchange Zipmex said it would resume withdrawals on Thursday after a suspension a day earlier, and was working to address its $53 million exposure to crypto lenders Babel Finance and Celsius.
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 would Was actively working with Zipmex to avoid loss of customers.
Zipmex said it would write off its $5 million exposure in Celsius.
“Zipmax is exploring all available channels, including fund raising, legal action and restructuring,” the company said in a statement.
The company said in a tweet on Wednesday that it suspended withdrawals, with an executive from its Thai affiliate citing liquidity difficulties at Babel Finance and Celsius as factors behind the move.
With the exception of transfers from an investment product, withdrawals in Thailand resumed late Wednesday, while the company said withdrawals in other regions would be restored later on Thursday.
Zipmex, which says it operates in Singapore, Thailand, Indonesia and Australia, is the latest in a string of crypto players globally that saw a sharp sell-off in markets that began in May with the collapse of two paired tokens, Luna and After is to run into difficulties. TeraUSD.
The company’s tweet on Wednesday cited “unstable market conditions and the financial difficulties of our major trading partners” for the suspension.
US-based Celsius filed for Chapter 11 protection on July 13, listing a loss of $1.19 billion 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 been in trouble in recent months.
Singapore-based crypto fund Three Arrows Capital is in liquidation, prompting hopes of further restructuring and more regulatory scrutiny in Singapore’s crypto sector.
A spokesman for the Monetary Authority of Singapore said the regulator was assessing an application by Zipmex for a crypto services license and would engage with the company on recent developments, including the decision to suspend withdrawals, as part of that evaluation. Zipmex is operating under a waiver while it awaits word on its application.
Zipmex said it was cooperating with the Thai Securities Exchange Commission, while the Indonesian government said it would ask Zipmex Indonesia to ensure that its crypto assets are protected from the effects of the trading situation.