Under strain, the Thai cryptocurrency exchange Zipmex is close to signing a $100 million ‘rescue’ deal with its current investor. The Block reports.
According to the report, venture firm V Ventures is prepared to put up the funds in exchange for 90% of the trading platform’s shares. The company, founded by the son of local billionaire Праюда Махагицири, is a current investor in Zipmex.
V Ventures plans to close the deal on November 4, subject to final terms, The Block’s sources say.
Among the conditions is the management’s agreement to three-year employment contracts with no departure from the company during that period. Also, co-founders Markus Lim, Akalarp Yimvilai, and chief marketing officer Praud Limpongpan must provide personal guarantees for any losses that V Ventures may incur.
The parties declined to comment on the personal guarantees. Journalists say Limpongpan clearly made clear to V Ventures that she would not sign the guarantee.
Zipmex suspended withdrawals, citing an event beyond its control. A couple of days later the platform partially resumed operations.
Also, the company announced negotiations with an unnamed ‘third party’ regarding the ‘rescue’ of the business. The liquidity shortfall at Zipmex was attributed to problems with partner firms — Babel Finance and Celsius Network. Their obligations amounted to $5 million and $48 million respectively.
The exchange also filed in Singapore court for protection from creditors. On August 15, the platform secured an extension of the moratorium to December 2.
The Thai Securities and Exchange Commission has turned to the police with a complaint against Zipmex and Йимвилаи.
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