News

Zipmex Likely To Be Liquidated For Rescue Investor Misses A Payment

Key Points:

  • Crypto exchange Zipmex’s bailout investors failed to pay, and the company warned employees that it could be liquidated.
  • Last July, the exchange filed for creditor protection in Singapore after crypto lender Babel Finance halted withdrawals.
  • The company is negotiating with shareholders on issues related to the funding of V Ventures.
According to The Block, crypto exchange Zipmex’s rescue backers refused to pay, and the company warned employees According to that it might be liquidated.

The rescue plan for the beleaguered cryptocurrency exchange is fraying after the business failed to collect the most recent payment due under a $100 million venture capital purchase.

According to the letter obtained by Bloomberg, the $1.25 million payment was due on March 23 to support working capital. The exchange said in the letter that until the fund is received, it would have to initiate liquidation procedures for a subsidiary, Zipmex Technologies Co., and halt wages for that division.

According to the source, Zipmex Technologies is a Thailand-based business of the crypto exchange operator Zipmex that was responsible for employing more than half of its full-time workforce.

The company stated that non-payment by its investor implies that more than 100 individuals would not get their March salary. It employs around 230 people, including consultants. The remaining are part of the group’s other entities and will be unaffected by the delayed payment for the time being.

Zipmex applied for debt creditor protection in Singapore in July after crypto lending provider Babel Finance blocked withdrawals due to severe liquidity stress.

Those acquaintances with the situation claimed in November last year that the Zipmex exchange may sign a rescue plan worth more than $100 million.

Chalermchai Mahagitsiri, the son of Thai billionaire Prayudh Mahagitsiri, formed V Ventures, which would manage the rescue plan and swap 90% of Zipmex’s shares. Although the transaction with V Ventures looks to be falling, the exchange is collaborating with its attorneys on other steps.

According to the letter, Zipmex branches in Thailand, Singapore, and Indonesia currently have enough funds to pay employees. The firm hasn’t gotten a definitive answer on when and if the current payment will be paid, and it’s consulting with its counsel on the next steps.

After the news broke, the Zipmex token (ZMT) saw a severe drop in price, with over 50% of its value lost in the last hour.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Harold

Coincu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.

Recent Posts

Clanker Token Trading Volume Hits $59.8 Million High

Clanker token trading volume hit $59.8M on Nov 21, accounting for 14.75% of PumpFun. Fee…

26 minutes ago

Bitcoin Spot ETF Inflows Hit $1 Billion Led By BlackRock

Bitcoin Spot ETF inflows hit $1.005B on Nov 21, led by BlackRock’s $608M and Fidelity’s…

49 minutes ago

New York Techie Bagged $72M from $15K Investment in Ethereum — Here’s How BlockDAG Can Offer Similar Jackpot

Discover the success story of a New York tech entrepreneur who made $72M from a…

1 hour ago

Best Altcoins to Buy Today: Qubetics Rides 1000x Potential to Hit $2.6M, Ethereum Stays Rangebound, Tron USDT Transactions Hit $52B

Discover the best cryptos to buy and hold today: Qubetics leads with 1000x potential, Ethereum…

3 hours ago

Trump Media Company Is Pushing New Venture For Crypto Service

With the platform facing a cracked whip, Trump Media company is expanding into new business…

4 hours ago

Crypto Advisory Council Now A White House Position Attracting Leaders

Major crypto firms, including Ripple, Kraken, and Circle, are competing for spots on President-elect Donald…

4 hours ago

This website uses cookies.