South Asian cryptocurrency exchange Zipmex seems to be in trouble again after it failed to receive the most recent payment due under a $100 million bailout deal.
As per reports, Zipmex’s upcoming venture capital buyout could be in jeopardy after the investor missed a $1.25 million payment on Thursday. The payment which was required to fund working capital was due March 23.
In a letter, Zipmex said it hasn’t received any hint on “when and whether” the latest payment will be made, and said it’s working with its advisers on the next steps. However, the embalttled crypto exchange also noted that it would have to liquidate its technology unit unless it receives the payment.
According to the letter, the exchange said it has the needed cash to pay employee salaries in its Thailand, Singapore, and Indonesia branches. However, it would have to start liquidation proceedings for a unit, Zipmex Technology Co., and suspend that division’s payroll. The crypto exchange decline to comment further.
This come hot on the heels after Zipmex was probed by the Securities and Exchange Commission (SEC) of Thailand for a breach of local rules, in January. Local authorities suggested the crypto exchange functioned as a “digital asset fund manager without permission” in Thailand.
The beef between the exchange and Thai SEC started in September, last year, after the agency filed a police report on Zipmex, which alleged “incomplete information given by the cryptocurrency exchange in its compliance procedure materials.”
Zipmex Falls Prey After Collapse of Terra/Luna
Zipmex’s financial crisis started after it fell victim to the crypto market crash following the collapse of the Hong Kong-based crypto lender Babel Finance, which defaulted on a $100 million loan. In July, the company filed for bankruptcy protection in Singapore after pausing all trading and withdrawals citing,
“Circumstances beyond our control, including volatile market conditions, and the resulting financial difficulties of our key business partners.”
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
Earlier this year the bankrupt crypto exchange was further mulling the possibility to restart customer withdrawals once a deal, signed with a venture capital firm, V Ventures, a subsidiary of Thoresen Thai Agencies Pcl. is finalized.
As per the announcement, all eligible creditors were required to fill out a form with the amount owed by February 21, with the company’s scheme manager and investment firm KordaMentha, aiming to finalize withdrawals on the condition an investment deal will close by March 21.