Zipmex Halts Withdrawals, Babel Loan Suspected Behind Freeze

Zipmex exchange has faced financial difficulties, which all links back to the crypto lender Babel Finance. Zipmex is a Singapore-based cryptocurrency exchange that operates in Thailand, Indonesia, Singapore, and Indonesia. The exchange suspended withdrawals from accounts on Wednesday citing "volatile market conditions." 

According to people "with firsthand knowledge of the matter," Zipmex lent a sum of about $100 million to Hong Kong-based Babel for a product named "ZipUp."

This was done to raise extra funds, but Babel froze withdrawals in June and is now looking to hire a restructuring specialist. 

In August of 2021, Zipmex had a brokerage and exchange license for Thailand, according to a press release. 

It also raised $41 million with a contribution from one of Thailand's biggest banks, the Bank of Ayudhya. Zipmex even teamed up with Visa to launch Zipmex cards.

The credible source says that it was not allowed for Zipmex to reappropriate regular customer funds, but they could reinvest the money made from Zipup under their Thai license. 

It has been confirmed that Zipmex is reaching out to investors to get funds, and Babel does owe money to Zipmex.

Neither a representative from Zipmex nor a Babel representative has agreed to comment on their respective company's financial status, though Zipmex's CEO stated that the group "does not comment on rumors."

Author: Garrett Meifert

Related Articles