Zipmex, a Singapore-based cryptocurrency exchange, has reportedly not received a $1.25 million payment from venture capital firm V Ventures as part of their buyout agreement, according to Bloomberg.
According to the report, the missed payment would be the fourth from V Ventures, a Thai shipping company Thoresen Thai Agencies subsidiary with offices in Thailand and the United States.
Additionally, Zipmex has warned that without the cash infusion, it will have to begin liquidating its Zipmex Technology unit and suspend its payroll.
Zipmex Difficulties In Past
Zipmex has had a troubled past, suspending withdrawals in July after a deal for its acquisition by Coinbase fell through.
The exchange was experiencing liquidity issues due to its exposure to Babel Finance, which reportedly owed Zipmex $48 million and suspended withdrawals in June.
Moreover, Zipmex also had $5 million exposure to Celsius. In February, it proposed the restoration of all withdrawals to investors.
The rescue plan for embattled crypto exchange Zipmex is beginning to fray after the company failed to receive the most recent payment due under a $100 million venture capital buyout https://t.co/l6gDYpmO6I
— Bloomberg Asia (@BloombergAsia) March 24, 2023
In August, Zipmex was granted three-month protection from creditors. The December V Ventures deal triggered an investigation by the Thai Securities and Exchange Commission — an agency it has run afoul of in the past.
The missed payment from V Ventures raises questions about the exchange’s future and its ability to continue operations.
The exchange has operations in Thailand, Singapore, Indonesia, and Australia. Zipmex has assured that salaries in units in Thailand, Singapore, and Indonesia are still covered.
Furthermore, the liquidation warning for its technology unit raises concerns about the exchange’s overall financial health.
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The missed payment from V Ventures is a blow to Zipmex, which relied on the working capital to continue operations.
The exchange has faced significant challenges recently and must navigate this latest setback to ensure its survival carefully.
CoinMarketCap data shows that Zipmex’s ZMT token dropped from $0.1029 on March 23 to $0.057. In addition, at the time of writing, ZMT is currently trading at $0.04153, down 27% in 24 hours and 64% in the last seven days.