Zipmex talked about the potential for a rescue arrangement and mentioned interest from an unnamed party. The South Asian exchange announced last week that it had frozen client funds due to financial difficulties.
South Asian cryptocurrency exchange Zipmex claimed to have received a proposal for a possible rescue arrangement.
The discussion of a bailout was made today on Twitter, where it was noted that one side had provided contract conditions in a private memorandum of understanding (MOU). Zipmex omitted the name of the party and any information about whether the offer would be a buyout or an investment.
“Our conversations with various interested parties have progressed significantly. One of those parties has offered terms in an MOU [memorandum of understanding] which includes confidentiality obligations so as to be able to commence Due Diligence,”
The company stopped all customer withdrawals on its platform on Thursday, blaming its partners’ “financial difficulties.” Therefore, it was obvious that Zipmex was the most recent company to experience cascading repercussions of a financial crisis in the cryptocurrency industry.
The exchange said that it had a $48 million exposure to Celsius and Babel Finance, two cryptocurrency companies that have defaulted on loans after suffering significant losses in the market.
Later, Zipmex started processing withdrawals from Trade Wallet once again, possibly relieving some of its clients. Client money stored in the Z Wallet, a second type of wallet utilized by the exchange to distribute rewards, has nevertheless remained inaccessible.
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