Southeast Asian crypto exchange Zipmex suspends withdrawals

July 21 (Reuters) – Southeast Asia-focused cryptocurrency exchange Zipmex has suspended withdrawals, the company said in a tweet on Wednesday evening, with an executive at the Thai affiliate citing liquidity difficulties at crypto lenders Babel Finance and Celsius.

Zipmex, which says it operates in Singapore, Thailand, Indonesia and Australia, is the latest in a string of global crypto players to run into trouble following a sharp selloff in markets that began in May with the collapse of two linked tokens, Luna and TerraUSD. read more

The company’s tweet cited “volatile market conditions and the resulting financial difficulties of our key business partners” for the suspension.

Zipmex Thailand CEO Akalarp Yimwilai told an online livestream on Wednesday evening that the local affiliate’s problems stemmed from problems at Singapore-based Zipmex Global, whose partners, including Babel Finance and Celsius, had liquidity problems.

Zipmex Global and its CEO did not immediately respond to requests for comment.

The relationship between Zipmex Global and Zipmex Thailand was not immediately clear. Akalarp said Zipmex Thailand had resumed operations except for transactions related to one investment product.

US-based Celsius did not immediately respond to a request for comment sent outside US business hours. The company filed for Chapter 11 protection on July 13, posting a $1.19 billion deficit on its balance sheet. read more

Crypto financial services provider Babel Finance suspended withdrawals in June. The company has not immediately commented on Akalarp’s statements. read more

The two are among several crypto players who have run into trouble in recent months.

Singapore-based crypto fund Three Arrows Capital is winding down, raising expectations in Singapore’s crypto sector for further restructuring and greater regulatory scrutiny. read more

The Monetary Authority of Singapore had no immediate comment on Zipmex’s situation.

The Thai Securities and Exchange Commission said it had asked Zipmex Thailand to explain the situation. Akalarp said it had.

Indonesia’s government said it would ask Zipmex Indonesia to ensure that trading in cryptoassets is protected from the impact of the situation at Zipmex Global.

In a separate incident, South Korean prosecutors said they had conducted search and seizure operations at local cryptocurrency exchanges looking for evidence of potentially illegal practices linked to Luna’s collapse. read more

Reporting by Chayut Setboonsarng and Juarawee Kittisilpa in Bangkok, Stefanno Sulaiman in Jakarta and Chen Lin in Singapore; Writing and additional reporting by Alun John; Edited by Shri Navaratnam and Edmund Klamann

Our standards: Thomson Reuters Trust Principles.