Troubled Crypto Exchange Zipmex to be Acquired for $100M: Report
A venture fund would take a 90% stake in the exchange if the deal goes through
Blockworks exclusive art by axel rangel
Troubled Southeast Asia crypto exchange Zipmex is reportedly expected to be acquired by a venture capital firm for about $100 million.
Pending regulatory approval and coming to an agreement on terms, V Ventures has offered to pay $30 million in cash and the remainder in unspecified digital assets, Bloomberg reported Wednesday, citing sources familiar with the matter.
The likely acquisition comes as there’s been an uptick in mergers and acquisitions interest, while companies in the region try to fend off declining spot cryptocurrency prices and dwindling big-money interest.
Several crypto firms throughout Asia have also reduced employee numbers. Representatives for the exchange and V Ventures did not immediately return requests for comment on the terms of the deal.
A video of a Dec. 2 Singapore court proceeding on the matter provided an overview of the offer, without mentioning the potential buyer or detailing specific terms.
The fund, a subsidiary of investment holding company Thoresen Thai Agencies, would retain a 90% stake in Zipmex, whose customers’ funds remain locked on its platform after it filed for bankruptcy protection earlier this year.
The Jump Crypto-backed firm was forced to halt withdrawals in July under the strain of a liquidity crunch that has gripped the industry.
In August, the crypto exchange tapped restructuring and financial consulting firm KordaMentha in a bid to oversee its payback scheme.
The firm sought $50 million in rescue funding from outside parties, attempting to patch a shortfall in purported unpaid loans from lenders Babel Finance and Celsius.
At peak, the firm had roughly 400 employees across Australia, Indonesia, Singapore and Thailand.
Don’t miss the next big story – join our free daily newsletter.