Thailand Regulator To Investigate Losses Faced By Zipmex Users

Zipmex, a cryptocurrency exchange that mainly operates in Southeast Asian nations recently halted its withdrawals affecting many investors. However, Thailand’s Securities and Exchange Commission has launched an investigation into this matter.

Watchdog to take feedback from affected users

According to a report by Reuters, Thailand’s regulator and law enforcement have begun their inquiry seeking the potential losses born by the public. It mentioned the SEC is taking feedback from impacted Zipmex users through an online forum. The inspection also asks traders how they had been affected by the issue created by the exchange.

Zipmex provides services mainly in Thailand, Singapore, Australia, and Indonesia. The platform stopped the withdrawal on July 20. It mentioned that due to volatile market conditions and financial difficulties of its business partners the exchange took this action to maintain its integrity.

The report states that Zipmex’s officials said that they are willing to comply with the regulator’s demand. It added that it is in constant contact with government agencies. This news comes amid the Thai lender SCB X Pcl’s announcement of extending the due diligence period for its $537 million possession in Butkub, a crypto exchange.

Zipmex funds stuck with other lending platforms

However, the withdrawal service resumed on the same evening in Thailand. While it was delayed in other countries. On July 21, Zipmex wrote that they are extending their maintenance period and trading will remain disabled until further notice.

The platforms later disclosed that they had exposure worth $53 million in Babel Finance and celsius. It highlighted that it was in regular contact with Babel Finance trying to resolve its $48 million exposure with the crypto lending firm. Meanwhile, Babel’s official highlighted that they were actively working on the issue to avoid any user losses.

Meanwhile, Zipmex is not the first crypto firm to face this kind of difficulty due to the massive collapse of the crypto market.

Ashish believes in Decentralisation and has a keen interest in evolving Blockchain technology, Cryptocurrency ecosystem, and NFTs. He aims to create awareness around the growing Crypto industry through his writings and analysis. When he is not writing, he is playing video games, watching some thriller movie, or is out for some outdoor sports. Reach me at [email protected]

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.