Troubled Crypto Exchange Zipmex Gets A VC Buyout
- Zipmex Asia is set to be acquired by V Ventures a subsidiary of the SET-listed shipping company Thoresen Thai Agencies Plc.
- V Ventures is offering $30 million in cash while the remaining amount will be tranferred in crypto coins, stated a report.
- Zipmex Asia will sell 90% of itself to V Ventures as per a share sale agreement presented in front of the court on Friday, Dec. 2.
- The crypto exchangehas been under restructuring after filing for bankruptcy and withdrawal halt in July.
Troubled crypto exchange Zipmex Asia has finally secured a buyout from V Ventures after a lot of trouble and regulatory supervision. The exchange had filed for protection from creditors under bankruptcy law and was granted the same as well. However, to ease the suffering of the firm’s customers as well as the executives, the exchange, which operates in Thailand, Singapore, Indonesia, and Australia, has accepted the buyout deal.
As per reports, Zipmex was about to sell itself to V Ventures, a subsidiary of the SET-listed shipping company Thoresen Thai Agencies Plc., back in November first week. However, the confirmation of the deal came just now as per Bangkok Post. This is one of the first rescues in the crypto space following the collapse of popular crypto firms like Celsius Network and Voyager Digital.
V Ventures is offering $30 million in cash followed by the remaining amount in cryptocurrencies. However, the report did not reveal what crypto coins will be used for transaction or if V Venture holds cryptocurrencies in its corporate treasury. As per a court hearing in Singapore on Friday, Dec. 2, a share sale agreement was presented but the buyer was not identified in the agreement.
Interestingly, V Ventures is set to acquire close to 90% of Zipmex which would make it the owner of the company and it will be interesting to see what plans the former has for the future of the crypto exchange. The information has yet to be made public by either of the firms and a spokesperson declined to comment on the matter “given the current sensitivities.”
Zipmex has been under restructuring after filing for bankruptcy and since then, there have been multiple questions raised by authorities on the operating process of the platform. CEO of the crypto platform, Eklarp Yimwilai, has been accused of non-compliance by the Thai SEC, the regulatory authority of Thailand.
The Thai SEC requested Zipmex to provide details of transactions and wallets used to hold assets of its customers prior to the withdrawal freeze that was announced in July this year but the crypto platform sent incomplete details depsite taking a lot of time in sending them.
“Such actions by Zipmex and Mr. Eklarp are considered to be non-compliance with the competent official’s orders. Which is an offense and has a penalty under Section 75 of the Digital Assets Act, the SEC has accused Zipmex and Mr. Eklarp to the ACT, to consider further legal action,” the financial regulatory authority said adding that the reasons provided by Zipmex for not complying are bogus.