Cash strapped cryptocurrency trading platform, Zipmex, is considering a possible buyout and is in talks with several entitites while calculating a rescue plan to navigate through the current financial crisis.
Last week, Zipmex, which cater to markets like Singapore, Thailand, Indonesia and Australia suspended withdrawals citing, “volatile market conditions, and the resulting financial difficulties of our key business partners”. The company noted the decision to freeze withdrawals was primarily due to problems at Singapore-based Zipmex Global, whose partners, including Babel Finance and Celsius, were experiencing liquidity problems. Zipmex Thailand CEO, Akalarp Yimwilai, said,
“Due to a combination of circumstances beyond our control including volatile market conditions, and the resulting financial difficulties of our key business partners, to maintain the integrity of our platform, we would be pausing withdrawals until further notice”.
Due to a combination of circumstances beyond our control including volatile market conditions, and the resulting financial difficulties of our key business partners, to maintain the integrity of our platform, we would be pausing withdrawals until further notice.
— ZIPMEX (@zipmex) July 20, 2022
The Rescue Plan for Zipmex
📢 Important Announcement 📢
Our conversations with various interested parties have progressed significantly. One of those parties has offered terms in an MOU which includes confidentiality obligations so as to be able to commence Due Diligence. #zipmex
— ZIPMEX (@zipmex) July 24, 2022
According to the latest report, Zipmex, shared a tweet, revealing that the company has been organizing multiple discussions with “interested parties” that could provide a possible solution for its financial predicament. One of the participating companies has even offered a Memorandum of Understanding (MOU) for a possible deal. Zipmex, also announced that, it would file lawsuits against two troubled crypto lenders in an effort to retrieve digital assets for its customers.
Yimwilai emphasized that Zipmex has already disabled ZipUp+, a product of Zipmex Global, to protect the stability of the Zipmex Thailand system. He added that Zipmex Thailand would not take legal action against Zipmex Global, as mistakenly reported in some media outlets, but instead cooperate with the company to sue Babel and Celsius. Yimwilai added,
“Zipmex Thailand has launched legal action against Babel Finance and is consulting lawyers so that customers who had invested via ZipUp+ could join a class action lawsuit against the Singapore firm.”
Crypto Winter Battering the Industry
Less than a month ago, crypto was in the midst of one of the worst market crashes it has ever experienced. In the aftermath of the market turbulence, some of the biggest crypto firms are cutting jobs, filing for bankruptcy and suspending twithdrawals and transfers. Market leaders including, Celsius Network, Voyager Digital, and Vauld, among a string of other companies have already succumbed to the crypto winter.
Crypto expert and educator, Wendy O, explained,
“We’re in a full-blown bear market, not a bear cycle. Just because we see some positive price action doesn’t mean we’re out of the clear. We have a long ways to go before anything positive happens.”