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 Aug 9, 2022 at 2:58 p.m. UTC

Jamie Crawley is a CoinDesk news reporter based in London.

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.

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.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Jamie Crawley is a CoinDesk news reporter based in London.

CoinDesk - Unknown

Jamie Crawley is a CoinDesk news reporter based in London.

Investing in the Future of the Digital Economy
October 18-19 | Spring Studio, NYC