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Zipmex Seeks $50M to Repair Balance Sheet After Freezing Withdrawals
Summary: Zipmex, a Singapore-based crypto exchange that froze withdrawals last week, said it aims to raise at least $50 million to repair its balance sheets, according to a Bloomberg report. This report comes less than a day after Zipmex tweeted that a party interested in an investment or buyout with the crypto exchange has offered terms ...
Zipmex, a Singapore-based crypto exchange that froze withdrawals last week, said it aims to raise at least $50 million to repair its balance sheets, according to a Bloomberg report.
This report comes less than a day after Zipmex tweeted that a party interested in an investment or buyout with the crypto exchange has offered terms in a memorandum of understanding (MOU), which included confidentiality obligations.
The $50 million Zipmex is seeking roughly represents Zipmex’s combined exposures to Babel and Celsius, which are $48 million and $5 million, respectively.
Zipmex has been derailed by the plethora of defaults that have been affecting the crypto world at large. Babel has enlisted restructuring advisors, while Celsius declared bankruptcy after citing a $1.2 billion hole in their balance sheet earlier this month.
Zipmex, a company that operates in Thailand, Singapore, Indonesia and Australia, paused withdrawals on their exchange last week citing market volatility and financial difficulties of their key business partners. Since that announcement, they resumed withdrawals on one of their two wallets.
The second wallet is a product called ZipUp+, which allows users to earn up to 10% on deposits of cryptocurrencies like Bitcoin, Ether and Litecoin. They have not disclosed an end date for the paused wallet.
Author: Tyler Irvin
Tags: Babel,bankruptcy,Celsius,Cryptocurrency Exchange,loan,zipmex
Link: Zipmex Seeks $50M to Repair Balance Sheet After Freezing Withdrawals [Copy]
