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