Skip to main content

Thai VC fund acquires troubled exchange Zipmex for $100M: Report

Zipmex reportedly plans to use crypto assets received from the acquisition to unlock frozen customer accounts on the platform by April 2023.

After weeks of negotiations on a potential buyout of Zipmex, venture capital fund V Ventures has reportedly reached a deal to acquire the embattled cryptocurrency exchange.

V Ventures, a subsidiary of Thoresen Thai Agencies (TTA) public company, is looking to purchase a 90% stake in Zipmex crypto exchange, Bloomberg reported on Dec. 2.

The VC fund is about to acquire Zipmex for about $100 million in digital assets and cash, anonymous sources familiar with the matter claimed. Citing a court hearing on Friday in Singapore, the report says that Zipmex was offered $30 million in cash and the rest in crypto.

According to the court hearing, Zipmex is planning to use cryptocurrency assets received from the transaction to unlock frozen customer accounts on the exchange by April 2023.

The acquisition report comes weeks after local media reported that V Ventures and Zipmex were on track to sign a majority buyout agreement.

As previously reported, Zipmex abruptly halted withdrawals on its platform in July 2022, citing a “combination of circumstances” beyond its control. The exchange, which has operations in Thailand, Singapore, Indonesia and Australia, subsequently started a restructuring process after getting three months of creditor protection from Singapore’s High Court.

Zipmex has also filed applications to extend the moratorium until April 2023 to support the restructuring efforts, which is pending consideration by the Singapore court.

Despite facing major issues, Zipmex has apparently continued offering some of its services after partially resuming withdrawals. According to Zipmex’s website, the exchange has been altering some of its withdrawal fees as well as listings over the past two months.

Zipmex and TTA did not immediately respond to Cointelegraph’s request for comment.

Related: Binance acquires regulated crypto exchange in Japan

The news comes shortly after Thailand’s Securities and Exchange Commission (SEC) accused crypto exchange Zipmex and its co-founder Akalarp Yimwilai of violating local laws. The authority specifically argued that Zipmex had not provided information on digital wallets and crypto transactions in compliance with the country’s Digital Assets Act.

Comments

Post a Comment

Popular posts from this blog

Dogecoin Forecasted to Hit $1: Here's When

Image
Dogecoin, initially conceived as a humorous cryptocurrency, has witnessed a notable surge in both popularity and market value throughout its existence. The asset managed to reach a peak of $0.1063 earlier in the same week. However, at press time, DOGE was trading at $0.09657 with a 5% daily drop. Market Dynamics and Open Interest A pivotal factor propelling Dogecoin ’s recent surge lies in the notable increase in notional open interest linked to DOGE futures and perpetual futures contracts. According to data from CoinGlass, there has been a remarkable 58% surge in open interest over the preceding week, reaching a substantial $625 million. This figure stands as the highest since Nov. 2, 2022, and industry experts contend that this surge, coupled with the rising price, validates a significant upward trend in the market. The Path to $1 As Dogecoin gains momentum and successfully breaches various resistance levels, the prevailing question among investors centers on its potential to at
Read more

SEC sues Kraken crypto exchange due to illegal operation

The U.S. Securities and Exchange Commission has filed a lawsuit against Kraken, accusing it of illegal securities operations. According to Reuters, the SEC accused the platform of illegally operating as a securities exchange without first registering with the regulator. The SEC said Payward Inc. and Payward Ventures Inc., operating under the name Kraken, have made hundreds of millions of dollars since 2018 by organizing the buying and selling of cryptocurrencies while “turning a blind eye” to securities laws designed to protect investors. The crypto currency exchange was also accused of insufficient internal controls and poor record keeping, partly reflected by commingling clients’ money with its own and paying operating expenses directly from clients’ accounts. “Kraken’s choice of malicious profits over investor protection is one we see far too often in this space.” Gurbir Grewal, SEC enforcement chief In a statement, Kraken said the SEC’s complaint acknowledges that any all
Read more

Robinhood increases crypto trading volume by 75% in Nov.

Investment firm Robinhood has released a report on some of its operating activity for Nov. 2023.  According to the document, the volume of cryptocurrency trading on the platform increased by 75% compared to October. Financial turnover from transactions with shares and option contracts remained at the same level as in Oct. 2023. Robinhood representatives also noted that over the past month customers made deposits amounting to $1.4 billion into the company’s accounts. “In November 2023, customers contributed roughly $1.4 billion of net deposits to Robinhood. Additionally, November equity notional trading volume s and options contracts traded were roughly in line with October 2023 levels, and November crypto notional trading volume s were roughly 75% above October 2023 levels.  Robinhood report The firm plans to release a detailed operating report for the fourth quarter of 2023 in the coming weeks. You might also like: Robinhood carries out third round of layoffs Robin
Read more