Crypto Exchange Zipmex to Reopen Withdrawals After Rescue Deal Closes

Summary

  • Zipmex, a Southeast Asian cryptocurrency exchange, plans to restart customer withdrawals once a deal it signed with a venture capital firm last month is finalized.
  • The company’s scheme manager, investment firm KordaMentha, aims to finalize withdrawals on the condition an investment deal will close by Mar. 21.
  • Zipmex is facing a probe from Thailand’s securities regulator over whether it was operating without permission.

Background

In November 2020, Zipmex found itself embroiled in a credit crunch due to its issuance of two loans worth $53 million that were not repaid. It is reported that the exchange is now under investigation from Thailand’s securities regulator over whether it was operating without permission. In order to avoid further financial issues, Zipmex reached an agreement with a venture capital firm and announced plans to restart customer withdrawals once the deal has closed.

Withdrawal Process

To facilitate the withdrawal process, all eligible creditors are required to fill out a form with the amount owed by Feb. 21. Investment firm KordaMentha will then be able to finalize withdrawals on the condition that an investment deal closes by Mar. 21.

Status of Rescue Deal

According to Zipmex CEO Marcus Lim, the „rescue deal“ between Zipmex and the venture capital firm has been „signed but not closed.“ However he noted that progress has been made and they are hopeful for closure soon.

Risk of Investigation

Since November 2020, Zipmex has been at risk of investigation from Thailand’s securities regulator about its operations without permission; however this does not seem prevent them from reopening their customer withdrawal system once their rescue deal is completed and closed.

Conclusion
It appears as though Zipmex will be able to reopen customer withdrawals soon providing their rescue deal agreement is finalized and closed according to schedule . All eligible creditors must submit details regarding funds owed by Feb 21st in order for KordaMentha to complete their side of the bargain before March 21st .