Zipmex Admits To Lending Babel Finance And Celsius $53M After Suspending Withdrawals

Zipmex, a cryptocurrency exchange, yesterday announced a temporary suspension of withdrawals and admitted a loan related to Babel Finance and Celsius.

After almost a day of withdrawal notice announced by this exchange, Zipmex has noted that the platform will open deposits/withdrawals for customers from July 22. However, ZipUp accounts will remain disabled until further notice, but will be reopened soon.

After the withdrawal notice, the Thai SEC required Zipmex to disclose the value of assets under management and provide proof of the deposits related to ZipUp. The watchdog also wants to know how this exchange has ties to struggling lending platforms like Babel Finance and Celsius.

Zipmex confirms $53M loan from Babel Finance and Celsius

The exchange admitted its exposure to two lending platforms experiencing liquidity problems, Babel Finance and Celsius, was $48 million and $5 million, respectively.

Since the beginning of June, under the pressure of “liquidity crises”, Babel has announced to suspend withdrawals and is hiring experts to restructure the company. Meanwhile, Celsius filed for bankruptcy last week shortly after Three Arrows Capital.

However, the exchange intends to write off the $5 million loan for Celsius and is in discussions with Babel to resolve the issue, this exchange confirmed.

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