Crypto Exchange Zipmex to Restart Customer Withdrawals Once Rescue Deal Closes

CORRECTION (Feb. 20, 14:30 UTC): Corrects headline to say withdrawals will be open once the agreement has closed. Adds comment from Zipmex CEO Marcus Lim. Removes previous quotes from a person familiar with the deal.

Zipmex, the southeast Asian cryptocurrency exchange that found itself embroiled in a credit crunch last year, plans to restart customer withdrawals once a deal signed with a venture capital firm last month is finalized, the firm's CEO told CoinDesk.

All eligible creditors are required to fill out a form with the amount owed by Feb. 21, with the company's scheme manager, investment firm KordaMentha, aiming to finalize withdrawals on the condition an investment deal will close by Mar. 21, according to an announcement.

A rescue deal, which was in "advanced talks" in November, has been "signed but not closed," Zipmex CEO Marcus Lim told CoinDesk in an email. "We are making good progress but the deal isn't done yet."

Zipmex was one of several firms that found itself in trouble following last summer's market collapse that spawned out of the implosion of Terra and its algorithmic stablecoin UST. It issued two loans to Babel Finance and Celsius Network worth $53 million, neither of which has been repaid.

It was reported last month that Zipmex is facing a probe from Thailand's securities regulator over whether it was operating without permission.

Read more: Crypto Exchange Zipmex Faces Probe From Thai Securities Regulator: Bloomberg