Thailand’s Securities and Exchange Commission (SEC) is concerned that some Zipmex users may have lost funds after the exchange briefly halted withdrawals and other services last week due to extreme market conditions.
The regulator announced on Monday that it is collaborating with law enforcement to collect data from Zipmex customers on how they were impacted by the company’s decision to freeze users’ accounts. The SEC urged affected investors to submit their information via an online forum on the regulator’s website.
“In order to provide more convenience to those affected, the SEC has prepared a form to fill out information/facts. to assess the impact to lead to the complaint process Including may be forwarded to the relevant agencies,” the watchdog wrote.
Recall that CryptoPotato reported last Wednesday that Zipmex paused withdrawals, citing volatile market conditions and financial issues with its business partners. Following the suspension, many wondered if the firm had exposure to other bankrupt firms like Celsius and Three Arrows Capital.
However, Zipmex resumed deposits and withdrawals less than 24 hours later, allowing users to access their funds. But that did not stop Thailand’s security watchdog from going after the crypto exchange.
The SEC sent a letter to Zipmex, demanding to know the company’s reason for pausing withdrawals after receiving complaints from investors. The regulator requested the exchange to provide information regarding the value of customers’ assets under its custody. In addition, the agency asked Zipmex if it had exposure to beleaguered crypto lenders Babel Finance and Celsius.
Shortly after resuming withdrawals, the trading platform revealed that it was financially exposed to both lenders. The exchange said the exposure amounts to $53 million, with Babel Finance owing $48 million and Celsius $5 million.
Zipmex is currently in talks with Babel on how best to resolve the issue. As for Celsius, the exchange intends to write off the exposure as a bad debt, considering that the amount involved is “minimal” and the crypto lender has gone bankrupt.
Meanwhile, recent reports revealed that Zipmex is in discussions with “interested parties” over a potential deal. The exchange was reportedly on the verge of raising about $40 million in a Series B+ funding round before the bankruptcy trend that befell the crypto industry in June.