Southeast Asia-focused cryptocurrency exchange Zipmex is in advanced talks to sign a majority buyout agreement with venture capital fund V Ventures this week, Bloomberg reported on Wednesday, citing people familiar with the matter.
Based in Singapore and Thailand, V Ventures is a subsidiary of Thoresen Thai Agencies Pcl which invests in cutting-edge technology companies.
The report stated that negotiations are currently ongoing and no deal has been reached yet. The financial terms of the possible deal were not disclosed.
Road to Recovery
Zipmex, which serves customers in Southeast Asia, filed for bankruptcy protection in Singapore in July after halting withdrawals on its platform due to its exposure to crypto lenders Babel Finance and Celsius Network as well as extreme market conditions.
After filing for bankruptcy, the exchange hired a restructuring firm in August to assist with a recovery plan. At the same time, the exchange announced it was in potential talks with potential buyers as part of its recovery plan.
Also in August, the exchange was granted a three-month moratorium extension to December 2 to address its liquidity issues.
Regulatory Backlash
Following the suspension of withdrawals on its platform, Zipmex has come under scrutiny from regulators in Thailand.
Two months ago, the Securities and Exchange Commission of Thailand (Thai SEC) filed a police complaint against the exchange and its co-founder Akalarp Yimwilai for failing to send transactional details related to its business and operations including wallets used to store customers’ assets.
Crypto Firms Struggles Amidst Bear Market
Meanwhile, Zipmex is not the only victim of the recent bear market, which saw the prices of major assets dropping significantly from their November peaks.
In July, crypto lenders Voyager Digital and Celsius filed for bankruptcy protection in the U.S. Bankruptcy Court of the Southern District of New York after halting withdrawals on their platform due to unfavorable market conditions.
Crypto lender Hodlnaut was placed under interim judicial management (IJM) by the Singapore High Court in August, weeks after pausing token swaps, deposits and withdrawals on its platform due to the bear market.
