Crypto Exchange Zipmex ‘On Track to Sign a Majority Buyout’ Following Three Arrows Capital Contagion

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June 25, 2023

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The troubled Asian crypto exchange Zipmex is in “advanced talks” with one of its investors about a potential bailout for the company.

According to a Bloomberg report from Wednesday, the Singapore-based exchange is “on track to sign a majority buyout” agreement with an investor as early as this week. Per Bloomberg’s sources, the investor in question is V Ventures, a subsidiary of the Thailand-based shipping and offshore-focused conglomerate Thoresen Thai Agencies Pcl.

Zipmex itself has not officially confirmed who the investor it is looking to sign the agreement with is.

Bloomberg’s sources, who reportedly asked not to be identified discussing confidential information, stressed that the negotiations are still ongoing, and said it is not certain that it will lead to a deal.

Zipmex has attempted a restructuring of its capital structure after a Singapore court granted it protection from creditors in August. The company first encountered difficulties in June and July this year, after it ran into a liquidity crunch following exposure to the troubled crypto lender Babel Finance.

The summer a difficult time for the entire crypto industry, with several other well-known companies going under. Among the best-known casualties from the June crypto sell-off are crypto lender Celsius (CEL) and crypto hedge fund Three Arrows Capital.

Given its large size and massive dealings with many other companies in the crypto space, the difficulties faced by Three Arrows Capital in particular sent shockwaves through the industry. For instance, the head of a Hong Kong-based crypto trading firm went public with accusations against the hedge fund, claiming the fund’s founders “ghosted” them after USD 1m went missing.

In August, it was reported that Zipmex had engaged KordaMentha Pte Ltd as financial advisors to help it through a restructuring process.