Thailand probing potential losses for users of crypto platform Zipmex

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THAILAND'S Securities and Exchange Commission (SEC) said on Monday (Jul 25) it was working with law enforcement to look into potential losses among the public after the crypto exchange Zipmex temporarily suspended withdrawals last week.

The SEC said in a statement it was asking impacted users of Zipmex to submit information via an online forum on how they had been affected by the problems at the platform.

The South-east Asia-focused crypto exchange, which operates in Thailand, Indonesia, Singapore and Australia, suspended withdrawals last Wednesday.

Withdrawals resumed on the same evening in Thailand and later on in other countries, except for transfers from one investment product, which the company later said had exposure worth US$53 million in crypto lenders, Babel Finance and Celsius.

Celsius and Babel Finance are among crypto players that have fallen into difficulties in recent months.

Late on Monday, the SEC's board ordered Zipmex to open trade according to trading rules within 3 days, including allowing withdrawals and deposits, it said in another statement.

The announcements come as crypto trading in Thailand has slowed and after Thai lender SCB X Pcl said it was extending the due diligence period for its US$537 million acquisition of Thai crypto exchange, Bitkub.

Zipmex is the latest crypto firm to face difficulties following a sharp sell-off in markets that started in May with the collapse of 2 paired tokens, Luna and TerraUSD.

Zipmex holds a digital asset exchange and a digital asset broker licence, the SEC website shows. At the weekend, the company said in a Facebook post it was exploring a deal with an "interested party". REUTERS

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