Zipmex Thailand has halted new deposits and trading on its exchange citing compliance with Thailand's Securities and Exchange Commission (SEC), according to a statement posted to the exchange's Facebook page.

The exchange clarified that withdrawals will be processed normally until January 31, 2024, at which point customers will need to contact the exchange's customer support team for assistance in withdrawing funds.

Zipmex, which is based in Singapore and services Thailand, Australia, and Indonesia as well, faces penalties from Thailand's SEC related to Zipmex Thailand's alleged misuse of a digital asset custodian service and for funneling customers to the Singapore-based exchange Zipmex Pte, creating a conflict of interest.

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Zipmex has also struggled to repay creditors after losing funds through exposure to crypto lenders Babel Finance and Genesis. A planned $100 million buyout of Zipmex fell apart earlier this year when the buyer, reportedly V Ventures, dropped out of the purchase. Zipmex Thailand was unable to be immediately reached for comment.