Troubled crypto exchange Zipmex’s $100 million bailout deal is in jeopardy as the exchange has not received its latest payment due on March 23.
The exchange was expected to receive $1.25 million on Thursday as part of its $100 million takeover deal with V Ventures, a subsidiary of Thorson Thai Agencies Pcl. However, Zipmex has yet to receive the latest payment, Bloomberg informed ofCiting a letter by the company.
In the letter, Zipmex said it had received no indication on “when or if” the latest payment would be made and said it was working with its advisors on next steps.
The exchange said it has the necessary cash to pay staff salaries at branches in Thailand, Singapore and Indonesia. However, it was merged into one entity, Zipmex Technology Co. liquidation proceedings for that division, and suspend payroll for that division until it receives the money.
According to the letter, Zipmax is getting the funding in three tranches.
Established in 2018, Zipmex provides crypto trading and investment services in Thailand, Indonesia, Singapore and Australia.
The Asian crypto exchange announced last summer that it was halting withdrawals due to volatile market conditions. The platform faced a liquidity crunch after it was exposed to troubled crypto lender Babel Finance.
The exchange said, “Due to a combination of circumstances beyond our control, including volatile market conditions and the resulting financial difficulties of our key trading partners, in order to preserve the integrity of our platform, we will pause withdrawals until further notice.” ” Said Twitter at the time.
Bloomberg last August informed of That Zipmex plans to meet with potential investors and Thailand’s financial regulator to discuss a recovery plan.
As of November, the platform was in advanced discussions with venture capital fund V Ventures on a majority stake sale.
Earlier this year, the Thai Securities and Exchange Commission said it was investigating whether Zipmex violated local regulations in offering certain digital-asset products.
High-profile crypto firms set to collapse in 2022
In addition to Zipmex, several other major crypto companies also collapsed last year amid the broader market downturn that began with the implosion of the Terra ecosystem.
The collapse of Terra’s decentralized stablecoin UST prompted a series of bankruptcies, including the implosion of major crypto lenders like Celsius and BlockFi, and even the collapse of cryptocurrency exchange FTX.
The crypto meltdown also spread to the mainstream banking system, taking down crypto-friendly bank Silvergate, which announced earlier this month that it had decided to cease its operations and liquidate its subsidiary.
After Silvergate, including two other banks Silicon Valley Bank and Signature Bank, both of which had some exposure to crypto firms, also announced their closures.