Zipmex reveals new details about his battle with Babel

Cryptocurrency exchange Zipmex, which blocked withdrawals on July 20, has just revealed new details about its battle with Babel.

In a press release, Zipmex leaders explained that they are far from suspecting that Babel would drag them on his descent into hell. In their words, the company would make them believe that its liquidity problems could be resolved quickly.

However, everything changed on the morning of July 20, when Babel revealed to them that “the road to resolution will be long and not entirely guaranteed”.

Zipmex turns to the Thai escort policeman

After meeting with Babel, Zipmex immediately reported the situation to Thailand’s Securities and Exchange Commission (SEC).

According to Zipmex, the information revealed by Babel on July 20 was “completely different from what was said in previous conversations”. The company therefore had no choice but to resort to justice.

Note that Zipmex had lent $ 48 million to Babel Finance and $ 5 million to Celsius. “Before the winter of cryptocurrencies, the financial history of these companies suggested that they would have no problem repaying their respective debts,” Zipmex pointed out.

“These companies have had the backing of very reputable investors,” the exchange clarified, noting that “Celsius Network raised over $ 750 million in a Series B fundraising round held in late 2021. an investment of $ 400 million. In total, Celsius Network received $ 864 million in funding, bringing its valuation to $ 3.5 billion.

As for Babel, Zipmex pointed out: “Babel Finance raised over $ 80 million in a Series B funding round in May 2022, bringing its valuation to $ 2 billion.”

However, in both cases, Zipmex’s reasoning turned out not to be correct. Although Celsius and Babel managed to raise funds, neither company was able to manage them.

A very hectic crypto winter

As the cryptocurrency winter continues to wreak havoc on the market, companies are trying to survive by all means, even if it means facing each other in court. In fact, the battle between Zipmex and Babel is just one example among many.

For several weeks Celsius Network has been fighting with Bancor, who accuses him of being a “hostile antagonist to the Bancor protocol” and of having “created short positions and tried to destabilize the project”.

That said, Terra Luna, the stablecoin project that turned out to be anything but stable, and Three Arrows Capital (3AC), the investment firm that recently filed for bankruptcy, continue to make headlines. With a long list of furious creditors to manage, the two companies no longer have room for error.

Kyle Davies and Su Zhun, the founders of 3AC also had to leave Singapore due to threats from some of their creditors.

Suffice it to say that for some, the crypto winter is ultimately the hottest time of the year.

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