Crypto exchange Zipmex discloses loan exposure worth $53M to Celsius, Babel

Singapore-based cryptocurrency exchange Zipmex has disclosed that is loaned out funds to struggling crypto lenders Celsius Network and Babel Finance, according to a statement released Thursday. Zipmex said its current loan exposure to Babel amounts to $48M, with $5M more to Celsius.Recall in mid-June when both Babel and Celsius froze customer withdrawals due to liquidity issues fueled by turbulent market conditions. About a month later Celsius filed for Chapter 11 bankruptcy. Given that Zipmex's exposure to Celsius is relatively small, the exchange is giving up on being paid as it intends to write off the loan against its balance sheet, the statement said. Zipmex added that it's currently engaging with Celsius and Babel to resolve the issue.The move comes shortly after Zipmex halted withdrawals due to market volatility beyond its control. Nevertheless, the company has now enabled withdrawals from its trade wallet and it's "actively working to resume trading," according to the statement. "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. There were no materially adverse impacts to our operations," Zipmex explained. Babel Finance did not immediately respond to a request for comment from Seeking Alpha. Earli...