Zipmex Likely To Be Liquidated For Rescue Investor Misses A Payment
Key Points:
- Crypto exchange Zipmex’s bailout investors failed to pay, and the company warned employees that it could be liquidated.
- Last July, the exchange filed for creditor protection in Singapore after crypto lender Babel Finance halted withdrawals.
- The company is negotiating with shareholders on issues related to the funding of V Ventures.
According to The Block, crypto exchange Zipmex’s rescue backers refused to pay, and the company warned employees According to that it might be liquidated.
The rescue plan for the beleaguered cryptocurrency exchange is fraying after the business failed to collect the most recent payment due under a $100 million venture capital purchase.
According to the letter obtained by Bloomberg, the $1.25 million payment was due on March 23 to support working capital. The exchange said in the letter that until the fund is received, it would have to initiate liquidation procedures for a subsidiary, Zipmex Technologies Co., and halt wages for that division.
According to the source, Zipmex Technologies is a Thailand-based business of the crypto exchange operator Zipmex that was responsible for employing more than half of its full-time workforce.
The company stated that non-payment by its investor implies that more than 100 individuals would not get their March salary. It employs around 230 people, including consultants. The remaining are part of the group’s other entities and will be unaffected by the delayed payment for the time being.
Zipmex applied for debt creditor protection in Singapore in July after crypto lending provider Babel Finance blocked withdrawals due to severe liquidity stress.
Those acquaintances with the situation claimed in November last year that the Zipmex exchange may sign a rescue plan worth more than $100 million.
Chalermchai Mahagitsiri, the son of Thai billionaire Prayudh Mahagitsiri, formed V Ventures, which would manage the rescue plan and swap 90% of Zipmex’s shares. Although the transaction with V Ventures looks to be falling, the exchange is collaborating with its attorneys on other steps.
According to the letter, Zipmex branches in Thailand, Singapore, and Indonesia currently have enough funds to pay employees. The firm hasn’t gotten a definitive answer on when and if the current payment will be paid, and it’s consulting with its counsel on the next steps.
After the news broke, the Zipmex token (ZMT) saw a severe drop in price, with over 50% of its value lost in the last hour.
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Harold
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