Zipmex froze withdrawals on last Wednesday, 20th July which is facing financial difficulties that link back to the troubled crypto lender Babel Finance.
Now Babel Finance try to restructure its business and organization hiring Kirkland as adviser.
Kirkland is also advising Celsius, Voyager on bankrupcies.
The Zipmex exchange launched in 2018, offering trading and investment services in Thailand, Indonesia, Singapore and Australia.
On Wednesday, Zipmex tweeted that it was blocking customers from taking direct custody of their funds due to volatile market conditions and the resulting financial difficulties for its key business partners.
The backstory is that a Singaporean arm of Zipmex faces a big loss on about $100 million of funds lent to the now beleaguered, Hong Kong-based Babel Finance through a product called "ZipUp."
Zipmex made the loan earlier, part of an effort to generate additional yield.
CoinDesk reported earlier this month that Babel, which froze withdrawals in June, was looking to hire the restructuring specialist Houlihan Lokey.
According to a press release in August 2021, Zipmex has an exchange and brokerage license in Thailand.
The person with knowledge of the matter said that the company was not permitted under the Thai license to reappropriate regular customer funds, but it could reinvest funds that were routed through the ZipUp product.
Zipmex has begun reaching out to investors in search of fresh funds, according to one executive who was contacted about the plan. Another person associated with Babel's restructuring confirmed that the company owes money to Zipmex.
It is very important to keep the basics of investment guidelines and risk management.
Most of Asia based investors including Singapore, Hong Kong, South Korea and China were very attracted by the unbelivable success of Luna/ Terra and all relevant business.
The amount and rate of profit was more than expectation, I guess. So, they could not be rationale on decion making.
While some of the local beasts were enjoying the profits, there were other beasts looking at them looking for the great chances to bite them and taking all profits.
The way to have a successful business is so simple. Crpyto is same.
Keeping healthy financial structure and stable cash flow and having risk hedging tools, any business should find its growth strategy and the steps to go forward one by one.
Source: Coindesk