Crypto Exchange Zipmex Receives Investment Offer

"Conversations with various interested parties have progressed significantly," Zipmex said.

AccessTimeIconJul 25, 2022 at 12:43 p.m. UTC
Updated May 11, 2023 at 5:38 p.m. UTC

Troubled cryptocurrency exchange Zipmex said it has received an investment offer from an interested party.

  • Singapore-based Zipmex announced via its Twitter account on Sunday that its "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 said, referring to a "memorandum of understanding" agreement.
  • CoinDesk understands that Zipmex is seeking offers for investment, as opposed to a buyout.
  • Last week, CoinDesk reported that Zipmex was facing losses on loans lent to Hong Kong-based crypto lender Babel Finance. Babel froze withdrawals in mid-June amid the sharp downturn in the crypto market that triggered a flurry of liquidations defaults relating to overleveraged firms like Three Arrows Capital and Celsius Network.
  • The company is owed a net $48 million by Babel Finance and $5 million by Celsius, Zipmex said in a statement on its website.
  • Zipmex had previously blocked users from taking direct custody of their coins because of volatile market conditions, the same step taken by Babel and Celsius. That move led to Thailand's Securities and Exchange Commission to look into potential losses among the public that Zipmex may have caused, Reuters reported on Monday.
  • In addition to Thailand, Zipmex offers crypto trading and investment services in Indonesia, Singapore and Australia.
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  • UPDATE (Aug. 9 14:57 UTC): Removes references to Zipmex facing loss on loans worth $100 million to Babel, adds amounts owed from company statement.

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    Jamie Crawley

    Jamie Crawley is a CoinDesk news reporter based in London.