Thai exchange Zipmex has disclosed that it filed suits against two embattled crypto lenders namely Babel Finance and Celsius Network in order to recover digital assets for its customers.
The latest development came after the platform had suspended trading for two hours of assets linked to Babel Finance and Celsius.
CEO of the trading platform Akalarp Yimwilai said that his firm had halted ZipUp+, a product of Zipmex Global, to protect the stability of its Thailand affiliate.
Refuting rumors of any trouble brewing between Zipmex Thailand and Zipmex Global, the exec revealed that the firms would instead join hands to collectively sue Babel and Celsius.
It all started when Singapore-based Babel paused the withdrawal of coins on June 17. Zipmex holds a discussion with Babel regarding asset recovery through lawyers. But the talks failed and this led to the decision of launching legal action against the Singapore firm.
Prior the this, the cryptocurrency exchange said recently in a Facebook post outlining the details of the amount of money it lent to the troubled crypto lenders.
According to the post, it has extended a loan amount of $48 million to Babel, with an additional $5 million to Celsius, which filed for bankruptcy last week.
Zipmex’s Loan Amount May Be As Much As $100M
Other anonymous sources put the amount to be at $100 million from a high-yielding program known as ZipUp to Babel, a claim denied by a Babel representative.
It needs to be reminded that both Babel Finance and Celsius had shut down withdrawals in June amid market volatility.
Zipmex, too hogged the headlines for freezing withdrawals and said that “resulting financial difficulties of our key business partners” amid market volatility was one of the reasons for the decision.
“Ever since the black swan events surrounding the crypto space, Zipmex has retrieved the majority of our funds and assets that were historically deposited with our deployment partners and has been actively working to resolve the situation for the remaining outstanding assets,” according to the statement.
Akalarp said the digital asset exchange resumed trading of 28 crypto coins on the night of 20th July, barring a few assets which still remain disabled.