Crypto Exchange Zipmex Asks for Creditor Protection Extension With Takeover Talks 'Ongoing'

A deal may be reached as early as next week, according to a person familiar with the matter.

AccessTimeIconNov 18, 2022 at 2:03 p.m. UTC
Updated Nov 23, 2022 at 10:01 p.m. UTC

Oliver Knight is a CoinDesk reporter based between London and Lisbon. He does not own any crypto.

Troubled cryptocurrency exchange Zipmex remains in talks with an investor over a takeover deal that may be completed as early as next week, according to a person familiar with the matter who asked to remain anonymous because they're not authorized to talk about the negotiations.

Earlier this month, Bloomberg reported the company, which was granted three months of protection from creditors by Singapore's High Court in August, was in discussions with venture capital fund V Ventures, a subsidiary of Thoresen Thai Agencies. Those talks hit a 'hiccup' that caused a delay, the person said.

Zipmex, which has entities in Thailand, Singapore, Indonesia and Australia, was one of several crypto firms to succumb to the pressures of this year's bear market. It issued two loans to Babel Finance and Celsius Network worth $53 million, neither of which has been repaid. Zipmex froze customer withdrawals in July citing market volatility.

As it attempts to steer the rescue deal over the line, Zipmex applied for an extension of its moratorium in Singapore, until April 2023, according to a statement on Friday. Moratorium is a form of protection that prevents creditors from making claims.

The company appointed KordaMentha, an Australian restructuring firm, to assist with a recovery plan.

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

Oliver Knight is a CoinDesk reporter based between London and Lisbon. He does not own any crypto.

CoinDesk - Unknown

Oliver Knight is a CoinDesk reporter based between London and Lisbon. He does not own any crypto.