Crypto exchange Zipmex seeks to raise about $50 million

Published On: July 26, 2022Categories: Alternative Investments1.4 min read

The fundraising target roughly represents Zipmex’s combined exposures to Babel and Celsius, which stand at $48 million and $5 million, respectively

Crypto exchange Zipmex is seeking to raise about $50 million to repair its balance sheet, the company confirmed the targeted fundraising amount in response to questions from Bloomberg.

The Asia-focused cryptocurrency exchange that froze some withdrawals last week said that it is in discussions to sell all or part of itself after lending money to troubled crypto firms – Babel Finance and Celsius Network Ltd.

Celsius and Babel Finance are among several cryptocurrency players that have fallen into difficulties in recent months.

Taking to Twitter on Sunday, Zipmex stated that one of ‘various interested parties’ it’s held talks with has ‘offered terms’ in a memorandum of understanding, without identifying the entity.

The fundraising target roughly represents Zipmex’s combined exposures to Babel and Celsius, which stand at $48 million and $5 million, respectively.

Zipmex was derailed by the daisy chain of defaults that’s rippled through the highly interconnected market for crypto lending and borrowing following a $2 trillion rout in digital assets.

Celsius filed for bankruptcy earlier in July and Babel has tapped restructuring advisers.

Thailand’s Securities and Exchange Commission said today it was working with law enforcement to look into potential losses among the public after Zipmex temporarily suspended withdrawals last week.

The SEC said in a statement it was asking impacted users of Zipmex to submit information via an online forum on how they had been affected by the problems at the platform.

The announcement comes as crypto trading in Thailand has slowed and after Thai lender SCB X Pcl said it was extending the due diligence period for its $537 million acquisition of Thai crypto exchange, Butkub.

Zipmex operates in Thailand, Singapore, Indonesia and Australia. It has a license for digital asset trading from the Securities and Exchange Commission of Thailand, according to its website.

About the Author: Jonathan Adams

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