Troubled Thai cryptocurrency exchange Zipmex’s rescue plans appear to be derailing. A recent report suggests that it did not receive the most recent payment due on March 23rd under a $100 million venture capital buyout.
The payment of $1.25 million was part of its rescue plan that was meant to fund working capital.
- According to a Bloomberg report, Zipmex will have to initiate liquidation proceedings for a unit, Zipmex Technology Co., and terminate the arm’s payroll if it does not get the required funds.
- Zipmex filed for debt relief in Singapore in July last year after its counterparty, crypto lender Babel Finance, paused withdrawals due to “unusual liquidity pressures.”
- The platform was also affected by the bankruptcy of another popular crypto-lending firm, Celsius. Babel and Celsius owe $48 million and $5 million, respectively, to Zipmex.
- Subsequently, the crypto exchange, which has entities in Thailand, Singapore, Indonesia, and Australia, briefly paused withdrawals on its platform for its fiat currency and trading funds service Trade Wallet.
- Thailan-based venture capital V Ventures, which is a subsidiary of Thoresen Thai Agencies, is acquiring Zipmex for about $100 million. So far, the crypto exchange has been receiving three tranches of funding, as per a letter viewed by Bloomberg.
- The exchange is yet to receive a final word of whether the latest payment will be made or not and is currently working with its advisers to determine the next steps.
- Meanwhile, Zipmex’s other branches in Thailand, Singapore, and Indonesia possess the required cash to pay salaries for now.