Zipmex suspends withdrawals as CEO dismisses concerns of financial difficulties

However, according to a source close to the exchange, Zipmex could be in difficulty before freezing consumers’ assets. Zipmex “has a Thai exchange license and an exempt status in Singapore,” according to the anonymous source.

“Under the Thai License, they are strictly not allowed to touch customer funds. However, Zipmex has a product on the exchange called zip-up that effectively lets users move funds under the Singapore entity to earn yield.”

According to the source, “funds were handed to Babel to generate the yield.” About $100 million was given to Babel, which is now in default.” Babel Finance, a Hong Kong-based asset management, froze withdrawals in June owing to “exceptional liquidity challenges.”

South East Asia has not been immune to the bear market crypto contagion, as the Vauld exchange in Singapore recently froze users’ cash. Nexo apparently made a buyout offer, but the company also offered to buy out Celsius.

When asked if Zipmex could face the same consequences as Celsius, the source said, “It’s plausible.” Babel has yet to resolve its default, which is a 100 million dollar hole.” Celsius halted users’ cash on June 13, and many fear the exchange may follow in the footsteps of Mt. Gox.

Lim responded to the charges by saying it was “business as usual.” Lim stressed that the organization “doesn’t comment on rumors.”

However, according to accounts from Zipmex consumers and the official Zipmex Twitter account, the company has since halted customer withdrawals.