After lending money to struggling cryptocurrency companies, Zipmex, a cryptocurrency exchange with a concentration in Southeast Asia, stated that it is in negotiations to sell all or a portion of itself. Celsius Network Ltd. and Babel Finance
The business verified the goal fundraising amount in an email response to inquiries from Bloomberg. Crypto exchange Zipmex is looking to raise approximately $50 million to restore its balance sheet.
After lending money to two problematic cryptocurrency companies, Babel Finance and Celsius Network Ltd., the Asia-focused cryptocurrency exchange that temporarily halted certain withdrawals last week revealed that it is in talks to sell all or a portion of itself.
Several bitcoin industry businesses have recently run into trouble, including Celsius and Babel Finance.
Without naming the organization, Zipmex tweeted on Sunday that one of the “many interested parties” it has spoken to has “offered conditions” in a memorandum of agreement.
With exposures to Babel and Celsius totaling $48 million and $5 million, respectively, the fundraising goal nearly reflects Zipmex’s exposure to both companies.
Following a $2 trillion decline in digital assets, a daisy chain of defaults that affected the highly linked market for crypto lending and borrowing caused Zipmex to crash.
Babel has hired restructuring advisors and Celsius filed for bankruptcy earlier in July.
Following Zipmex’s temporary suspension of withdrawals last week, Thailand’s Securities and Exchange Commission today said that it was collaborating with law enforcement to investigate any potential losses among the general public.
In a statement, the SEC said it was requesting information from affected Zipmex users on how the platform’s issues had affected them via an online forum.
The announcement comes after Thai lender SCB X Pcl announced it was extending the due diligence phase for its $537 million acquisition of Thai cryptocurrency exchange, Butkub, and as cryptocurrency trading in Thailand has slowed.
Australia, Singapore, Thailand, Indonesia, and Zipmex are all active markets. According to its website, it holds a license from the Securities and Exchange Commission of Thailand to trade digital assets.
Under the new guidelines established by the central bank for companies dealing in crypto assets, the exchange in Singapore only has an exempted payment service provider authorization.
One of its offerings is ZipUp+, a cryptocurrency account that offers rewards of up to 10% on deposits of coins including Bitcoin, Ether, and Litecoin. That product’s withdrawals are still blocked.
According to a Zipmex representative, “We have been engaged with the SEC and other regulatory organizations to supply them with the necessary paperwork.”
According to the SEC website, Zipmex has both a digital asset exchange license and a digital asset broker license. The business said over the weekend that it was looking into a deal with an “interested party” in a Facebook post.
Following a dramatic sell-off in markets that began in May with the collapse of two paired tokens, Luna and TerraUSD, Zipmex is the most recent company to have financial troubles.
