The damage caused to users of crypto exchange Zipmex will be investigated in Thailand

The fall in the crypto market for the past few months has affected many firms in this segment. Crypto exchange Zipmex has banned withdrawals by users. Thailand’s Securities and Exchange Commission (SEC) is investigating the damage caused to users by this. The SEC said it has asked users of Zipmex to provide information on how the exchange’s decision affected them.

As reported by Reuters, the exchange does business in Thailand, Indonesia, Singapore and Australia. It had banned withdrawals last week. However, this bar was later removed except for one investment product. The exchange had said that it has given credit of about 53 million dollars to crypto lending firms Babel Finance and Celsius Network. Both these firms are facing financial difficulties. Celsius Network had filed bankruptcy earlier this month. It has a loss of about $1.19 billion. About two months ago, the huge fall in TerraUSD and Luna caused a huge selloff in the crypto market and took a toll on the firm’s lending business. Thereafter, the firm closed the transactions of the customers to rein in the losses.

Some regulators, including the Texas State Security Board, are investigating the decision to ban Celsius Network transactions. The US Securities and Exchange Commission had also sought information from the firm in this regard. Joseph Borg, director of the Alabama Securities Commission, said, “I am concerned that the firm’s clients, including retail investors, may need to redeem their assets but they may. This could add to their financial difficulties.”

Crypto trading volume in Thailand has plummeted after lending firm SCB X Pcl extended due diligence to acquire crypto exchange Bitkub. Investors are also suffering due to financial constraints faced by many firms in this segment. Bitcoin, the largest cryptocurrency by market capitalization, made a high of $69,000 in November last year. Its price has come down to less than one-third.

(This news has not been edited by NDTV team. It has been published directly from Syndicate feed.)

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