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Thailand’s Zipmex in buyout talks

By Carine Lee

05:54, 25 July 2022

Cryptocurrency exchange rate panel
The crypto exchange is planning legal action against two crypto lenders – Photo: Shutterstock

Thailand’s Zipmex has recently announced that it would be filing lawsuits against two troubled crypto lenders to retrieve digital assets for its customers.

The crypto exchange’s CEO Akalarp Yimwilai said it would take legal action against Babel Finance and Celsius Network, according to a news report.

BTC, BTC Cash (BCH), LTC, ETH and XRP are just some of the cryptocurrencies that are traded on Zipmex, which is touted to be Southeast Asia’s favourite crypto app with 200,000 users. 

XRP to US dollar

The move came after Zipmex Thailand suspended trading for two hours last Wednesday as customers were unable to withdraw coins from its ZipUp+ service, a product of Zipmex Global, which is linked to Babel Finance and Celsius.

Akalarp said his firm disabled ZipUp+ to protect the stability of the Zipmex Thailand system.

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How it started

The crypto exchange’s CEO said the problem began when Singapore-based Babel suspended the withdrawal of coins on June 17.

Zipmex Global responded by consulting lawyers in Singapore and holding talks with Babel to retrieve assets.

XRP/USD

0.48 Price
+6.210% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

ETH/USD

3,130.46 Price
+0.360% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

DOGE/USD

0.11 Price
+0.270% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

BCH/USD

369.40 Price
+5.760% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.50

However, the CEO said talks failed on Wednesday so he suspended ZipUp+ trading and informed the Thai Securities and Exchange Commission immediately.

ETH to US dollar

Zipmex Thailand has since launched a legal action against Babel and is consulting lawyers so that customers who had invested through ZipUp+ could join a class action lawsuit against the Singapore firm.

The CEO added that Zipmex Thailand would be joining Zipmex Global to sue Babel and Celsius. The crypto exchange is suing Celsius for the $5m it owes to Zipmex customers.

Celsius has reportedly filed for bankruptcy in the US.

Akalarp said Zipmex Thailand resumed trading in 28 digital coins two hours after the suspension, though some coins remain disabled.

Markets in this article

BCH/USD
Bitcoin Cash / USD
369.40 USD
20.05 +5.760%
BTC/USD
Bitcoin / USD
57816.20 USD
234.85 +0.410%
ETH/USD
Ethereum / USD
3130.46 USD
11.13 +0.360%
LTC/USD
Litecoin / USD
69.68 USD
1.32 +1.940%
XRP/USD
Ripple / USD
0.48063 USD
0.02779 +6.210%

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Related reading

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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