Zipmex announced it is considering buyout offers from “various interested parties” after suspending customer withdrawals last week.
Embattled crypto-focused trading app Zipmex is reportedly considering buyout offers from a list of potential investors. According to the Singapore-based crypto exchange, its conversation with various interested parties has progressed significantly. Zipmex also added that one of these parties has already proffered terms of sale in a memorandum of understanding (MOU).
The exchange refrained from providing further insight into the deal and did not state the prospective buyer’s name. However, Zipmex said that it seeks to commence “Due Diligence,” a process that enables potential buyers to scrutinize the financial statements of target companies, among other things.
Zipmex previously came close to a potential acquisition from Coinbase in March this year. However, after extensive discussions, the American crypto exchange opted to make an undisclosed strategic investment as part of a larger Series B+ investment pool.
Zipmex Potential Buyout Comes on Heels of Crypto Market Slump and Related Events
Zipmex’s buyout development comes only a few days after the exchange paused customer withdrawals in a manner similar to Celsius. Furthermore, this suspension of withdrawals comes amid the pervading slump in the prices of digital assets across the board. In an official statement issued a day after suspending withdrawals, Zipmex disclosed that it has sizable investments in some other beleaguered crypto players. According to the crypto exchange, it has $5 million in exposure to Celsius and $48 million in Babel Finance. Babel is a Hong Kong-based crypto financial services provider that also announced a pause on withdrawals due to prevailing circumstances.
Zipmex further stated that it is actively working towards resolving its situation with both Babel and Celsius. The embattled crypto exchange does not rule out taking legal action against the equally beleaguered duo as it seeks to retrieve its digital assets. In addition, Zipmex stated that the Securities and Exchange Commission (SEC) is abreast of the developments. According to the exchange:
“The SEC is well informed of the situation and we are cooperating fully with them. We will continue to engage in open dialogue with the community, regulators, and all impacted parties.”
Furthermore, Zipmex also explained at the time:
“Our first priority is to our users and we are doing everything in our power to restore all functionality on the platform while being as transparent as possible.”
Zipmex has since eased the halt on withdrawals for users of some products in Thailand. This includes re-enabling customer withdrawals for its Trade Wallet where users can store crypto and fiat for trading. Furthermore, Zipmex Thailand CEO Akalarp Yimwilai said the exchange resumed trading 28 coins on Wednesday night. However, Zipmex’s Z wallet, an avenue for users to deposit funds to earn additional perks, remains offline.
Operational Reach
Zipmex operates in four countries, namely Thailand, Singapore, Indonesia, and Australia. The company offers both spot trading for crypto as well as interest on deposits.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
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