Thai SEC Asks Zipmex to Clarify Withdrawal Freeze

Thai Securities and Exchange Commission (SEC), Thursday, requested explanation on cryptocurrency exchange Zipmex’s move to restrict withdrawals.

The Thai SEC wrote to Zipmex, requesting information on the amount of customer assets under control and how deposited monies were used in regard to the ZipUp program.

On Wednesday, Zipmex froze withdrawals after citing “volatile market conditions” and financial difficulties of “key business partners.”

The regulator also enquired whether Zipmex has used lending platforms Celsius and Babel Finance.

Earlier on Thursday, Zipmex announced on Twitter that it would be restarting withdrawals for its Trade Wallets, although ZipUp accounts will remain disabled until further notice.

Several crypto platforms have also frozen withdrawals since the market downturn in June. Including Celsius, Babel Finance and Voyager Digital. Celsius and Voyager have since filed for bankruptcy.

Another Singapore-based cryptocurrency platform, Vauld, ceased all deposits, withdrawals, and trading operations earlier this month. Citing financial difficulties in the midst of unpredictable market conditions.

Vauld is funded by top venture capital firms such as Coinbase Ventures, Pantera Capital, and Peter Thiel’s Valar Ventures. And is now in talks with crypto lending firm Nexo, which has expressed an interest in acquiring the company.

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On Monday, Legion Strategies, a hedge fund connected with Anthony Scaramucci’s Skybridge Capital, also “temporarily” paused investor redemptions.

Telling Decrypt that “the suspension is motivated mostly by a liquidity mismatch coming from late-stage private investments in the fund.”

Legion Strategies invests in cryptocurrencies, but the firm assures that “there is zero risk of any asset liquidation.”