Zipmex eyes $100m buyout offer as it secures creditor protection: Report

Embattled cryptocurrency exchange Zipmex is set to be acquired by V Ventures, a subsidiary of Thoresen Thai Agencies Pcl, for $100 million. The venture capital fund is reportedly offering $30 million in cash, and the rest will be paid in crypto tokens.

According to Bloomberg, V Ventures will buy around 90% of Zipmex. The court said that crypto received from the deal will be distributed to gradually unlock customers’ frozen wallets in the platform in early April.

Saving Zipmex

Zipmex, which has units in Thailand, Singapore, Indonesia and Australia, announced it would stop withdrawals in July this year, citing volatile market conditions and the resulting “financial difficulties” of its “key business partners” in July.

This was during the time when several crypto platforms and lending firms, such as Celsius Network and Babel Finance, took similar steps, blaming market turbulence and the subsequent counterparty risk. Zipmex issued two loans to the platforms worth $53 million, neither of which was repaid. While Celsius sank into bankruptcy, Zipmex happens to be one of the first bailouts in Asia.

Last year, Zipmex secured an investment worth 41 million dollars from one of Thailand’s largest banks – the Bank of Ayudhya. More recently, it was reported that Coinbase reached an agreement to make a strategic investment in the Singaporean entity and was working on a Series B+ funding round estimated to raise its valuation to $400 million. However, the exchange later confirmed that it did not make any investment in the entity.

Creditor protection extension

According to a notice posted on the company’s website, Zipmex was granted an extension of creditor protection by the Singapore High Court for all its units until April next year. The court further issued a directive that any super priority bailout funding application from Zipmex Asia is scheduled for December 21.

The announcement read,

“Please be advised that during the hearing of applications for extension of time this morning (HC/SUMS 4184, 4185, 4186, 4187 and 4188 of 2022), the Singapore High Court has granted extensions of each of the moratoriums in respect of each of the Zipmex Company Limited, Zipmex Pte Ltd, Zipmex Asia Pte Ltd (“Zipmex Asia”), Zipmex Australia Pty Ltd and PT Zipmex Exchange Indonesia respectively until 2 April 2023.”

The troubled firm was previously granted three months of protection from creditors until December 2 for more time to restructure its debt.

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