How Celsius, Babel Finance's liquidity crisis impacted Asia's this crypto exchange

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Asia's one of the leading cryptocurrency exchanges, Zipmex is facing crisis at its bay due to its exposure in the Celsius Network and Babel Finance which are currently facing liquidity crunch. Zipmex is among the many crypto platforms, to halt their withdrawals and suspend trading due to volatile market conditions which dented their balance sheets. Although Zipmex is trying to release some cryptocurrencies for withdrawals from its Z wallet, however, its withdrawals of major tokens like Bitcoin and Ethereum will remain locked up. Also, the exchange's yield-based program ZipUp+ remains suspended.

Zipmex cited the origin of their problems to illiquidity in Celsius Network (“Celsius") which led the latter to opt for bankruptcy. While the New Jersey-based crypto lending company impacted Zipmex's balance sheet, the Southeast Asian crypto exchange is also vulnerable to Babel who is struggling with a similar issue like Celsius.

In a statement, Zipmex revealed that for its ZipUp+ product, the company deposits funds into cryptocurrency lending platforms including Celsius Network (“Celsius"). It said, "When markets started to turn, Zipmex started to withdraw its funds from deposit partners."

However, in the case of Celsius, Zipmex was informed on June 13 that due to unforeseen circumstances, withdrawals were paused. Later on, Celsius declared bankruptcy on July 14.

"At this date Zipmex wrote off this deposit and absorbed it through its own balance sheet," the company said on Celsius.

Alongside, Zipmex said, "we were made aware that another of our deployment partners (Babel) was experiencing liquidity issues. However, there was no reason for alarm as there was open and regular dialogue and both parties were pressing ahead with a