South Asia’s plight cryptocurrency exchange Zipmex said it received an offer on a potential bailout deal.
Cryptocurrency Exchange Zipmex Receives An Unnamed Rescue Deal Offer
In a Twitter post today, the exchange raised the possibility of a bailout agreement, noting that a counterparty offered terms of agreement in a confidential memorandum of understanding (MOU).
Zipmex did not disclose the identity of the counterparty in question and did not specify whether the offer was an investment or an acquisition offer.
In its message, the exchange said:
“Our discussions with many interested parties have progressed significantly. One of these parties has proposed provisions in an MOU containing confidentiality obligations to begin Due Diligence.”
The company on Thursday stopped all customer withdrawals on its platform, citing the “financial woes” of its partners.
Thus, it was understood that Zipmex was the last company to be affected by the financial crisis that had an impact on the crypto money industry.
📢 Important Announcement 📢
Our conversations with various interested parties have progressed significantly. One of those parties has offered terms in an MOU which includes confidentiality obligations so as to be able to commence Due Diligence. #zipmex— ZIPMEX (@zipmex) July 24, 2022
The exchange announced that it owed $48 million to Babel Finance and Celsius, two crypto firms that defaulted on their loans after suffering serious losses in the cryptocurrency market.
Later, Zipmex resumed withdrawals from Trade Wallet, possibly making it easier for some of its clients. However, the wallet called Z Wallet, which the exchange uses to pay customer rewards, remained inaccessible to customers.
Companies like Celsius, Voyager, and 3AC also bitcoin and they had entered a financial crisis, affected by the decline in the crypto-asset market.
*Not investment advice.