Crypto Exchange Zipmex Seeks Extended Creditor Protection With Takeover Talks ‘Ongoing’

Troubled cryptocurrency exchange Zipmex remains in talks with an investor over a takeover deal that could be completed as early as next week, according to a person familiar with the matter who asked to remain anonymous as she is not authorized to speak negotiations.

Earlier this month, Bloomberg reported that the company, which was granted three months of creditor protection by Singapore’s High Court in August, was in talks with venture capital fund V Ventures, a subsidiary of Thoresen Thai Agencies. Those talks were met with a “hiccup” that caused a delay, the person said.

Zipmex, which has entities in Thailand, Singapore, Indonesia and Australia, was one of many crypto firms to succumb to bear market pressures this year. It issued two loans to Babel Finance and Celsius Network worth $53 million, neither of which was repaid. Zipmex froze customer withdrawals in July citing market volatility.

As it tries to push the bailout deal down the line, Zipmex has requested an extension of its moratorium in Singapore, until April 2023, according to a statement on Friday. The moratorium is a form of protection that prevents creditors from making claims.

The company has appointed KordaMentha, an Australian restructuring firm, to help it put together a turnaround plan.

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