Thailand investigates potential losses for users of crypto platform Zipmex

Thailand’s Securities and Exchange Commission said on Monday it was working with law enforcement to review potential losses among the public after crypto exchange Zipmex temporarily suspended withdrawals last week.

The SEC said in a statement that it was asking affected Zipmex users to submit information via an online forum about how they were affected by the platform’s issues.

The Southeast Asian-focused crypto exchange, which operates in Thailand, Indonesia, Singapore and Australia, suspended withdrawals last Wednesday.

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

Celsius and Babel Finance are among several crypto players that have struggled in recent months.

A Zipmex spokesperson said it is in full compliance with SEC requests and is actively reaching out to government agencies.

The announcement comes as crypto trading in Thailand has slowed and after Thai lender SCB X Pcl said https://classic.set.or.th/set/pdfnews.do?newsId=16572373881420&sequence=2022082576 that it was extending the due diligence period for its $537 million acquisition of Thai crypto exchange, Butkub.

Zipmex is the latest crypto firm to struggle following a sharp sell-off in the markets that began in May with the collapse of two paired tokens, Luna and TerraUSD.

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