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Crypto Exchange Zipmex's Rescue Plan in Jeopardy

The embattled exchange's latest payment has gone unpaid.

Photo by Michał Parzuchowski / Unsplash

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Zipmex, the Thai crypto exchange that is currently undergoing restructuring, is facing further difficulties as it has failed to receive the most recent payment due under a $100 million venture capital buyout, according to a report by Bloomberg.

The payment of $1.25 million was due on March 23 to fund working capital, according to a letter seen by Bloomberg News. Zipmex said in the letter it would have to start liquidation proceedings for a unit, Zipmex Technology Co., and suspend that division’s payroll unless it receives the money.

According to the publication, the letter said Zipmex had been receiving three tranches of funding. The exchange's arms in Thailand, Singapore, and Indonesia were relying on the funds to pay salaries to staff, according to the letter.

Zipmex Asia is currently being acquired for US$100 million by Thoresen Thai Agencies subsidiary V Ventures. If the payment is not made, Zipmex's rescue plan may be in jeopardy. Zipmex is however, reportedly working with its advisers on next steps.

Recovering in Indonesia

Zipmex is still recovering from a tough year that included liquidity issues, halted withdrawals due to exposure to failed crypto lenders Babel Finance and Celsius Network, and restructuring.

In July 2022, the exchange filed for debt relief in Singapore to protect itself from creditors, and it is currently under scrutiny by regulators in Thailand. The exchange could have been operating as a "digital-asset fund manager without permission," according to regulators.

Despite the challenges, Zipmex shared its 2023 roadmap and crypto industry outlook during a company event in February. Erdina Oudang, Zipmex's head of public policy in Indonesia, said that Zipmex Indonesia "has been successful in recovering from the tough year and has even managed to reactivate customers' access to their assets and resume operations, while still making improvements on its business and products."

Zipmex's management has been cooperating well with the regulator, according to Yovian Andri P, Coordinator of Lawmaking and Regulatory Services (CoFTRA) in Indonesia, who delivered remarks on behalf of acting head of CoFTRA Didid Noordiatmoko.

Related: Zipmex Resumes Operations, Reactivates Customer Access in Indonesia