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

  • By bitcoincasts
  • November 19, 2022

Zipmex, the beleaguered cryptocurrency exchange, is still in talks with an investor about a recovery deal, which could start next week, according to a person familiar with the matter. Because he had no right to discuss negotiations, the person familiar with the matter gave a secret name.

Earlier this month, Bloomberg reported that the company had been in talks with venture capital firm V Ventures, followed by a subsidiary of Thoresen Thailand. The Malaysian High Court granted the company a three-month debtor to defend it in August. The person familiar with the matter said there was a glitch in the negotiations, which caused the negotiations to be delayed.

Zipmex, which has physical lines in Thailand, Malaysia, Indonesia and Australia, is one of several login password companies that succumbed to bear market pressure this year. It issued several loans worth $53 million to Babel Finance and Celsius Network, which were not repaid. Zipmex froze customer withdrawals in July, citing market changes.

Zipmex applied to extend its suspension in Singapore until April 2023 while trying to correctly guide the emergency rescue agreement across the line, according to a statement on Friday. Suspension is a maintenance way to control the debtor to explicitly put forward the creditor's rights.

The company works for KordaMentha, an Australian restructuring company, to help develop recovery plans.