Zipmex Confirms Loans Worth $53M to Babel and Celsius

CoinDesk reported Wednesday that the exchange's financial difficulties link back to crypto lender Babel Finance.

AccessTimeIconJul 21, 2022 at 6:05 p.m. UTC
Jenny Johnson
President and CEO
Franklin Templeton
Jenny will discuss developing crypto-linked investment products in a bear market, the mood among her clients and her lon...
Jenny Johnson
President and CEO
Franklin Templeton
Consensus 2023 Logo
Jenny will discuss developing crypto-linked investment products in a bear market, the mood among her clients and her lon...

Helene is a U.S. markets reporter at CoinDesk, covering the US economy, the Fed, and bitcoin. She is a recent graduate of New York University's business and economic reporting program.

Jenny Johnson
President and CEO
Franklin Templeton
Jenny will discuss developing crypto-linked investment products in a bear market, the mood among her clients and her lon...
Jenny Johnson
President and CEO
Franklin Templeton
Consensus 2023 Logo
Jenny will discuss developing crypto-linked investment products in a bear market, the mood among her clients and her lon...

Singapore-based cryptocurrency exchange Zipmex said Thursday in a Facebook post offering further details on a deposit-withdrawal pause announced earlier this week that it lent money to the troubled crypto lenders Babel Finance and Celsius.

According to the Facebook post, the Zipmex exchange’s current exposure to Babel is $48 million, with an additional $5 million to Celsius, which filed for bankruptcy last week.

Sources told CoinDesk on Wednesday that Zipmex lent as much as $100 million from a high-yielding program known as ZipUp to Babel, but a Babel spokesperson subsequently said that the loan was far smaller, while not disclosing the exact amount.

Both Babel Finance and Celsius suspended withdrawals in June amid market volatility.

Zipmex, which made headlines Wednesday for freezing withdrawals amid financial difficulties, said that “resulting financial difficulties of our key business partners” amid market volatility were part of the reason 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 have been actively working to resolve the situation for the remaining outstanding assets,” according to the statement.

The exchange plans to write off the $5 million loan to Celsius and is in discussion with Babel to evaluate its options to resolve the issue, Zipmex wrote.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Helene is a U.S. markets reporter at CoinDesk, covering the US economy, the Fed, and bitcoin. She is a recent graduate of New York University's business and economic reporting program.


Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.


CoinDesk - Unknown

Helene is a U.S. markets reporter at CoinDesk, covering the US economy, the Fed, and bitcoin. She is a recent graduate of New York University's business and economic reporting program.