After the Thailand SEC suspended withdrawals for all its customers, Zipmex was under investigation by the Thailand SEC. The startup resumed withdrawals on the same night, but it was a little too late.
A week later, the Singapore-based Zipmex filed for bankruptcy protection in Singapore, becoming the latest victim of the global downturn in digital currencies and exposure to the now-bankrupt Three Arrows Capital.
Today, Zipmex has announced it will release ether andBitcoin this week, according to a company spokeswoman. The release will allow 60% of Zipmex customers to retrieve their digital assets after a suspension of withdrawals from its Z Wallet product.
On Thursday and Aug. 16 it will be released by Zipmex. The company allowed digital coins XRP, ADA, and SOL to be withdrawn last week.
The trouble with Thailand's authorities began on July 20 when it stopped taking cryptocurrencies withdrawals for its users. The startup resumed withdrawals on the same evening in Thailand and later in other countries, except for transfers from one investment product.
Last week, The Southeast Asia-focused exchange, which operates in Thailand, Indonesia, Singapore, and Australia, disclosed that it had exposure worth $53 million in Babel Finance, and Celsius.
Zipmex extended a loan amount of $48 million to Babel, with an additional $5 million to Celsius, which was recently for bankruptcy. The loan amount is $100 million from a high-yielding program known as ZipUp to Babel, according to anonymous sources. A Babel representative denied the claim. Zipmex plans to write off the $5 million loan to Celsius, and is in discussion with Babel to determine its options to deal with the issue.
According to the Thailand SEC, Zipmex currently holds a digital asset exchange and a digital asset broker license. Akalarp Yimwilai, Chief Executive Officer and Co-founder of Zipmex Thailand, said on July 22 that Zipmex is a digital trading platform licensed by the Ministry of Finance and regulated by the Securities and Exchange Commission SEC. Five applicants were submitted on July 22 by their solicitors seeking moratoriums on legal proceedings against Zipmex for up to six months. A filing grants companies an automatic moratorium for 30 days, or until a Singapore Court makes a decision on the application, whichever is earlier.