The Thai cryptocurrency exchange Zipmex has received an offer for a deal under which an unnamed third party would help the company rescue its business.
📢 Important Announcement 📢
Our conversations with various interested parties have progressed significantly. One of those parties has offered terms in an MOU which includes confidentiality obligations so as to be able to commence Due Diligence. #zipmex— ZIPMEX (@zipmex) July 24, 2022
Our conversations with various interested parties have progressed significantly. One of the parties has proposed terms within a MOU, which also includes confidentiality obligations, to enable the conduct of Due Diligence, the statement said.
Representatives of the platform did not specify whether this referred to investments or an acquisition of the company.
On July 20 Zipmex paused withdrawals, citing “volatile market conditions and the resulting financial difficulties of key business partners.”
In particular, the platform owes the lending platform Celsius Network and the crypto financial services provider Babel Finance. Their liabilities total $5 million and $48 million respectively. Both organisations are experiencing serious difficulties.
On June 17 Babel Finance announced a halt to payments and withdrawals from its own products due to liquidity shortages. Subsequently, media reports surfaced about a potential restructuring of its business.
On 14 July Celsius Network filed for bankruptcy and reported a ‘hole’ in its balance sheet of $1.2 billion.
Toward the end of the week Zipmex partially resumed deposits and withdrawals.
Analysts at Kaiko warned that some cryptocurrency exchanges could go bankrupt due to non-native market conditions, shrinking client activity and problems among industry participants.
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