Published
1 year ago on
August 27, 2022
Embattled crypto exchange Zipmex has requested meetings with Thai regulators to discuss a recovery plan. The meetings will be attended by Zipmex, Thailand’s Securities and Exchange Commission (SEC), and government agencies. The firm has also said that its potential investors will attend the meetings.
In a statement issued on Thursday, Zipmex said that it submitted a letter requesting a meeting with the Thai regulators. The statement said:
We have requested meetings with Thailand’s Securities Exchange Commission and regulators in the country where we operate to introduce our investors to regulators and present our recovery plan to government agencies.
The company has been tightlipped on who its potential investors may be but said it was in “advanced stages” of discussion with two investors after signing three memorandums of understanding over the past month.
The Singapore-based cryptocurrency exchange has also appointed a restructuring firm to assist with a recovery plan after it was forced to halt customer withdrawals and file for creditor protection last month. The Australian firm KordMentha will work alongside the exchange’s solicitors, Morgan Lewis Stamford, on how best to restructure the company and preserve its assets. On August 15, Zipmex received three months of creditor protection in Singapore, giving it time to devise a recovery plan strategy. The firm has also started to reopen withdrawals, with customers now able to transfer 0.0045 BTC to their Trade wallets from their previously locked Z wallets.
A funding round was reportedly conducted in June, meaning that current capital inflows into the company are not related to its current financial troubles. The funding round is reported to be worth $40 million at a valuation of $400 million.
Zipmex is one of the numerous crypto firms to have fallen into hard times in the current market downturn which bankrupted lenders including Celsius Network and Voyager Digital. Singapore-based crypto hedge fund Three Arrows Capital also imploded amid the conditions. Zipmex reportedly loaned $48 million to fellow lender Babel Finance, and $5 million to Celsius. None of the loans have been repaid yet.
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