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Zipmex is about to sign a $100 million rescue package with V Ventures.
Distressed Asian crypto exchange Zipmex is reportedly in an advanced talking stage with VC fund V Ventures concerning the sale of a majority stake in the business. In July, the exchange halted withdrawals as a result of its exposure to two beleaguered crypto lenders, Babel Finance and Celsius. Zipmex froze withdrawals in June after the lenders failed to replay loans worth $53 million. This came amid an uneasy period across the crypto marker. After a while, the crypto company hired a restructuring firm to help with a recovery plan. It made the move in August after filing for protection from creditors in the previous month.
Zipmex in Advanced Talks with V Ventures
According to people familiar with the matter, Zipmex is about to sign a $100 million rescue package with V Ventures. Notably, Thai billionaire son Chalermchai Mahagitsiri and coffer king Prayudh Mahagitsiri founded the venture capital firm. And previous reports have revealed that the exchange was in talks with the two investors for a potential deal. A source added that Mahagitsiri intends to commit financially to the business through Cloudsec Asia, his cybersecurity services company. While rumors spread in August, the troubled crypto exchange did not confirm or deny the matter. Rather, chief marketing officer Proud Limpongpan stated that the company was “bound by legal confidentiality agreement.”
A person with direct knowledge has revealed that V Ventures is about to receive a 90% stake in Zipmex. However, the person noted that there are conditions that could stop the deal’s success. If the needs are met, V Ventures will close the agreement with Zipmex on Friday. The source mentioned some of the conditions attached. The co-founders of the crypto exchange Akalarp Yimwilai and Marcus Lim, as well as the chief marketing officer, will sign personal guarantees to make good any losses the company may suffer. Another condition is that Zipmex top executives agree to three-year employment contracts that prohibit them from leaving the company within that period.
As of now, Limpongpan has refused to sign the guarantee. She has also stated clearly that she will not consent to the condition. The chief marketing officer also told The Block that she is “no longer a full-time employee of Zipmex and operating as a consultant since the beginning of August.”
Zipmex CEO said to The Block:
“Thank you for your interest in our efforts to make our customers whole. As talks reach a critical and sensitive stage with our potential investor, I am unable to comment as all parties are under NDA and we do not want to jeopardize the deal. Will update you as soon as possible.”
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