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Zipmex Requests Moratorium Extension in Singapore

by Blockchain NewsApril 19, 2023

Cryptocurrency exchange Zipmex has requested another extension to its moratorium on debt payments in Singapore due to liquidity issues. The firm has filed a request in Singapore’s courts to extend its existing moratorium period by two months. Zipmex plans to use the extra time to plan and reopen Z Wallet withdrawals.

Zipmex initially filed for a moratorium in July, which allowed the company to postpone payments due to its exposure to Celsius, a cryptocurrency lending platform. The exchange suspended withdrawals earlier that month, while CEO Marcus Lim did not deny reports that the firm was facing insolvency. Singapore’s courts granted Zipmex’s moratorium request, giving the company until December 2022 to come up with a restructuring plan.

However, the platform has continued to request extensions on the moratorium, with the most recent one likely pushing its deadlines to June. In an announcement on April 18, Zipmex said it was in negotiations with investors to “maximize returns for customers” following a delay in payments.

It’s unclear which investor Zipmex was referring to in its latest announcement. In March, venture capital firm V Ventures reportedly did not provide a payment of more than $1 million necessary for Zipmex to avoid liquidating certain operations and stop distributing payroll to employees.

Zipmex’s latest request for an extension highlights the challenges faced by cryptocurrency exchanges in a volatile market. The crypto industry has seen significant fluctuations in value over the past year, with Bitcoin alone experiencing a dramatic rise and fall in value. This has led to liquidity issues for some exchanges, as investors are unable to withdraw funds and pay debts.

The company’s struggles also reflect the broader regulatory challenges facing cryptocurrency exchanges. Many countries are grappling with how to regulate the industry, with some governments taking a more restrictive approach. In Singapore, authorities have implemented strict rules for cryptocurrency exchanges, including requiring them to obtain a license from the Monetary Authority of Singapore (MAS).

Despite these challenges, the cryptocurrency industry continues to attract investors and users around the world. While some exchanges may struggle, others are thriving, and the industry as a whole shows no signs of slowing down. However, as the Zipmex case demonstrates, investors and exchanges must navigate a complex landscape filled with uncertainty and risk.

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Zipmex Misses Buyout Payment

by Blockchain NewsMarch 24, 2023

According to recent reports, the Singapore-based cryptocurrency exchange known as Zipmex has failed to make a payment totaling $1.25 million as required by the terms of its buyout agreement with V Venture. V Venture is a venture capital firm that is owned by the Thai shipping company known as Thoresen Thai Agencies. Zipmex warned V Venture in a letter that if the money was not received, it was possible that the company would have to begin the process of liquidating its Zipmex Technologies segment and halt wages. The activities in Thailand, Singapore, Indonesia, and Australia will be impacted as a result of this.

This is the fourth time that V Venture has failed to make a payment, and the delay may result in an inquiry being launched by the Thai Securities and Exchange Commission. When an agreement with Coinbase to acquire it fell through in July 2022, Zipmex temporarily halted the processing of withdrawal requests. Due to the exchange’s exposure to Babel Finance, which purportedly owed Zipmex $48 million and froze withdrawals in June, the exchange was having problems maintaining enough liquidity. Moreover, Zipmex has an exposure to Celsius of 5 million dollars.

In August of 2022, Zipmex was given protection from its creditors for a period of three months. But, since V Venture did not make their payment on time, the exchange may be forced to take extreme actions in order to maintain their financial stability. According to CoinMarketCap, the Zipmex token has dropped from its all-time high of $0.1029 on March 23 to its current price of $0.057 at the time of this writing. The Zipmex token is listed on multiple cryptocurrency exchanges, some of which include Binance and BitForex.

The last year has been a difficult one for Zipmex, with many unsuccessful takeover bids, problems with cash, and the need for creditor protection. The failure to make a payment by V Venture may prove to be the death knell for the faltering exchange, which may be forced to sell off one of its components in order to continue operating. The failure to make timely payments can potentially result in an inquiry by regulatory authorities, which would further compound the exchange’s problems.

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Tagged : Buyout / Liquidation / News / Payment / V VENTURE / Zipmex

Bankrupt Crypto Exchange Zipmex ‘In Advanced Takeover Talks’ with V Ventures

by Blockchain NewsNovember 3, 2022

Zipmex Pte, the embattled operator of the Asian cryptocurrency exchange, is in advanced talks with venture capital fund V Ventures over the sale of a majority stake in the business to a potential investor, according to Bloomberg, people with knowledge of the matter requested not to be identified discussing confidential information.

V Ventures is a subsidiary of Thoresen Thai Agencies, one of Thailand’s largest and longest-serving investment firms. Zipmex appointed V Ventures to identify potential buyers or investors, the sources said.

It is understood that the potential investor, whose real name has not been disclosed, is heading to takeover, which would see the buyer take a majority stake in the company, the people revealed.

Zipmex is on track to sign on Friday, but negotiations are ongoing, and it is not certain that they will lead to a deal, the people said. The value of the deal still remains undisclosed.

Talks are underway, and there has been a growing sense around the exchange in recent months that a potential investor is prepared to buy. In August, Zipmex stated that it was in “advanced talks” with two investors. The exchange is close to completing the deal, and it is thought it could be done before the end of this month.

In late July, the southeast Asia-focused crypto exchange filed for bankruptcy protection amid the threat of legal action from creditors.

The application helped protect the exchange against third-party actions, claims, and proceedings while working to focus all its efforts on resolving the bankruptcy crisis without worrying about creditors’ claims.

Zipmex ran into a liquidity crunch after its exposure to embattled Babel Finance went sour, forcing it to suspend trading withdrawals. Blockchain.News reported the matter on July 22.

The company is under a moratorium until December 2 that provides it with protection from creditors while it finalizes investors for fresh funding to jumpstart its business.

Image source: Shutterstock

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Tagged : News / TAKEOVER / V VENTURES / Zipmex

Zipmex’s Woes May Soon be Over, But Here is the Catch

by Blockchain NewsSeptember 29, 2022

The financial struggles of the crypto platform Zipmex may soon be nipped in the bud, should the requests of a new investor Chalermchai Mahagitsiri.

According to a report by The Block, citing an email that was sent by Mahagitsiri’s representatives, there is a demand on Zipmex’s co-founder and Chief Executive Officer, Marcus Lim, to forfeit 100% of his holdings in the company.

“We request the Zipmex Team to prepare a confirmation letter of your share forfeiture for you to sign and to take effect at closing,” the email addressed to Lim on Tuesday reads. “We look forward to moving on from this situation and receiving this confirmation letter.”

Since Zipmex halted withdrawals on its platform and declared bankruptcy in the aftermath of its exposure to bankrupt Celsius Network and Babel Finance, the company has been in search of a whole new crop of investors. The goal was to raise funding worth as much as $53 million to cover up the total loss from the exposure to its trading partners.

As reported, Zipmex has been in talks with two investors, including Mahagitsiri, son of Thai billionaire and coffee king Prayudh Mahagitsiri. CEO Lim noted in a statement that comments cannot be made with regard to ongoing negotiations as details are guarded based on an NDA.

“As my team and I continue to work towards bringing in new investments to make our customers whole, negotiations with various parties are entering a critical phase,” Lim told The Block in emailed comments. “As such, I am unable to comment on any details as there is a non-disclosure agreement (NDA) between parties, and until they have been agreed upon by all stakeholders, I cannot disclose more. I am, however, surprised any interaction (even if it occurred) was leaked given the NDA.”

With more shareholders, according to a Bloomberg report expressing their desires to see Lim and co-founder Akalarp Yimwilai leaves the company. While Yimwilai has said he will be willing to heed investors’ requests, Lim is also expected to take a bow if the majority of shareholders demand a change in management.

The beleaguered firm has until December to sort its woes according to the moratorium granted by the Singaporean High Court.

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Tagged : Bankruptcy / Finance / Investment / Zipmex

Indonesia to Request Local Executive to Run Crypto Business

by Blockchain NewsSeptember 21, 2022

Indonesia could see new rules for crypto asset exchanges.

The South Asian country’s trade ministry is planning to issue rules to govern crypto exchanges that will require two-thirds of the board of directors and commissioners to be Indonesian citizens and live in Indonesia, a deputy minister said Tuesday.

This change has come about due to the financial issues faced by cryptocurrency exchange Zipmex as it has currently stopped users from withdrawing funds.

“We don’t want to give permits (to exchanges) carelessly, so only for those that meet the requirements and are credible,” deputy trade minister Jerry Sambuaga told reporters after a parliamentary hearing.

Sambuaga added that the ministry’s Commodity Futures Trading Regulatory Agency (Bappebti) will issue the new rule soon.

However, a timeframe has not been provided.

According to a document issued by the ministry, the new rule will require will also require an exchange to use a third party to store client funds and prohibit exchanges from re-investing stored crypto assets.

Didid Noordiatmoko, acting head at Bappebti, told the parliamentary hearing that ensuring two-thirds of the board were Indonesians based in the country “could prevent the top management running away when a problem hits the exchange.”

Sambuaga added that the plan to launch an Indonesian crypto asset bourse could hopefully be completed within this year. It has already been delayed from last year.

According to a report by Deal Street Asia, the proposed digital assets exchange is an attempt by the government to protect its masses as the interest in cryptocurrencies has continued to grow among the populace.

The crypto exchange was initially planned to go live in 2021 but was later postponed to the first quarter of 2022. This postponement did not also stir the launch of the exchange as its complexity forced the government to abandon the plan to date.

Bappebti’s data shows that cryptocurrency has gained popularity in Southeast Asia’s biggest economy, with a total transaction volume of crypto assets up more than 1,000% in 2021 at 859.4 trillion rupiahs ($57.37 billion).

The country’s performance in terms of transaction taxes has also improved.

Since the rollout of fintech and crypto transaction taxes in May, Indonesia has amassed nearly $6.8 million, according to the nation’s tax compliance special staffer Yon Arsal.

The Indonesian finance ministry imposed a value-added tax (VAT) of 0.1% on crypto-assets purchases on May 1 this year.

The Indonesian administration decided to tax crypto transactions based on surging popularity among local investors.

Furthermore, crypto interest on Indonesian soil has skyrocketed since the onset of the COVID-19 pandemic. The number of crypto owners stood at 11 million in 2021.

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Tagged : Bitcoin / Blockchain / Crypto / Indonesia / Regulation / Zipmex

Thai Regulator Files Charges Against Zipmex Executives

by Blockchain NewsSeptember 8, 2022

The Thailand offshoot of the beleaguered digital assets platform, Zipmex might have landed itself in more trouble and this time, it is with the Thai Securities and Exchange Commission (SEC).

As announced by the SEC, it requested information from the trading platform in relation to withdrawals and handling of users’ funds in relation to its ZipUp+ program.

The regulator said its call for information was not honoured by the exchange and its Thai CEO Eklarp Yimwilai, and as such, it is recommending legal action against the platform and the executive.

Reiterating how Zipmex defied its orders and request for information, the SEC said that “Zipmex and Eklarp have a circumstance of not delivering such information to the competent official within the specified time. and upon receiving notification from the competent official, only part of the information was submitted, incomplete, including the circumstance of delay in not submitting the information requested by the competent official without a reasonable cause or an unreasonable excuse.”

The case has been referred to the Technology Crime Investigation Headquarters and the Royal Thai Police (AMC) for further action.

Zipmex suspended withdrawals on its platform back in July, coming off as one of the casualties of the Celsius Network bankruptcy and the liquidity drain of Babel Finance. The trading platform has been doing all it can to get back on its feet including hiring a restructuring firm, KordaMentha to work on a viable recovery path for its business.

The woes of Zipmex are not isolation distress as other major players in the digital currency ecosystem are also currently being weighed down by the unprecedented crypto winter. Voyager Digital, BlockFi, and Vauld Group are amongst the most distressing outfits in the digital currency ecosystem today.

Since it halted withdrawals, Zipmex has been granted a 3-month moratorium by Singapore High Court in order to give it ample time before meeting customers’ requests for their funds.

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Tagged : Bankruptcy / Crypto / Regulation / SEC / Zipmex

Thailand Tightens Crypto Advertising Rules after Crypto Zipmex Bankrupted

by Blockchain NewsSeptember 2, 2022

Thailand’s Securities & Exchange Commission (SEC) announced Thursday that it has tightened cryptocurrency firms’ advertising rules.

In an emailed statement sent on Thursday, the SEC told various crypto-related companies operating in the country that ads for digital assets must include clear and visible warnings about the risks of investing in cryptocurrencies.

The SEC tightened rules after discovering that some ads contain no warnings about crypto risks while other promotions feature only positive information.

The regulator’s details of the tighter crypto advertising regulations include:

· Advertisements must not feature false, misleading or exaggerated claims

· Warnings of risks must be clear and easy to notice

· The ads must feature balanced views, mentioning both positive and negative factors

· And crypto firms must limit advertising to official channels like their websites

Recently, the authorities announced their plans to provide more protections for retail investors.

The enforcement of the new advertising rules by the SEC comes after Zipmex, a locally licensed crypto exchange, and its regional parent company, Zipmex Pte, headquartered in Singapore, halted withdrawals in July due to a liquidity crisis after their exposure to troubled Babel Finance, and Celsius Networks went sour.

Zipmex, a crypto exchange that operates in markets such as Singapore and Thailand, halted withdrawals as the fallout from a series of defaults spread further into the industry.

The Asian platform encountered financial difficulties stemming from dealings with troubled crypto lending firms Babel Finance and Celsius Network Ltd.

The second-largest digital assets exchange in Thailand has been fined $1.92 baht by the local regulator, according to the statement published on Security and Exchange Comission, due to a failure to abide by the standards of professional ethics under the Royal Decree on Digital Asset Trade 2018.

Zipmex ran into financial troubles due to its $48 million exposure to Babel and $5 million with Celsius.

Efforts to Improve Consumer Protection

The latest move by Thailand makes it join countries such as the U.K. and Singapore in seeking to protect retail investors in the wake of a $2 trillion selloff in digital asset markets.

In January, the U.K. government strengthened cryptocurrency ads’ rules to bring them in line with other financial assets.

The U.K. financial watchdog, the Financial Conduct Authority (FCA), said the rules would increase consumer protection and also encourage innovation.

In March last year, The U.K. Advertising Standards Authority (ASA) banned what it termed a “socially irresponsible” Bitcoin ad and sent warnings to a group of crypto firms about crypto promotions.

In January this year, the regulator banned two ads by Crypto.com, stating that the firm was encouraging people to purchase Bitcoin with credit cards.

Meanwhile, in January, Singapore’s financial regulator, the Monetary Authority of Singapore, restricted digital asset players from promoting crypto services in public spaces, leading to the removal of advertisements in MRT stations and the dismantling of Bitcoin ATMs.

The regulator is now considering further measures to discourage retail investors from accessing crypto.

Image source: Shutterstock

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Tagged : Advertising / Crypto / Regulation / Thailand / Zipmex

Thailand Tightens Crypto Advertising Rules after Crypto Zipmex Bankrupt

by Blockchain NewsSeptember 2, 2022

Thailand’s Securities & Exchange Commission (SEC) announced Thursday that it has tightened cryptocurrency firms’ advertising rules.

The SEC tightened rules after discovering that some ads contain no warnings about crypto risks while other promotions feature only positive information.

The regulator’s details of the tighter crypto advertising regulations include:

· Advertisements must not feature false, misleading or exaggerated claims

· Warnings of risks must be clear and easy to notice

· The ads must feature balanced views, mentioning both positive and negative factors

· And crypto firms must limit advertising to official channels like their websites

Recently, the authorities announced their plans to provide more protections for retail investors.

Zipmex, a crypto exchange that operates in markets such as Singapore and Thailand, halted withdrawals as the fallout from a series of defaults spread further into the industry.

The Asian platform encountered financial difficulties stemming from dealings with troubled crypto lending firms Babel Finance and Celsius Network Ltd.

Zipmex ran into financial troubles due to its $48 million exposure to Babel and $5 million with Celsius.

Efforts to Improve Consumer Protection

The latest move by Thailand makes it join countries such as the U.K. and Singapore in seeking to protect retail investors in the wake of a $2 trillion selloff in digital asset markets.

In January, the U.K. government strengthened cryptocurrency ads’ rules to bring them in line with other financial assets.

The U.K. financial watchdog, the Financial Conduct Authority (FCA), said the rules would increase consumer protection and also encourage innovation.

In January this year, the regulator banned two ads by Crypto.com, stating that the firm was encouraging people to purchase Bitcoin with credit cards.

The regulator is now considering further measures to discourage retail investors from accessing crypto.

Image source: Shutterstock

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Tagged : Advertising / Crypto / Regulation / Thailand / Zipmex

Zipmex Appoints Restructuring Firm Kordamentha To Work on Recovery Plan

by Blockchain NewsAugust 27, 2022

Zipmex, a cryptocurrency exchange based in Singapore, announced on Friday that it has appointed an Australian restructuring firm, KordaMentha Pte, to assist with a recovery plan.

KordaMentha will work with Zipmex on how best to reorganize the exchange and preserve its assets.

Apart from that, Zipmex revealed that it is in advanced talks with two potential investors – Country Group Holdings (CGH), a Thailand-based investment firm, and Chalermchai Mahagitsiri, son of Thai billionaire and coffee king Prayudh Mahagitsiri – for a potential deal. That is according to a source with direct knowledge of the matter.

CGH is an investor in Thailand-based Cryptomind Group, which operates decentralized finance (DeFi) asset management platform called Elkrem Capital, the source disclosed.

As per the source, Mahagitsiri plans to invest in Zipmex through his cybersecurity services firm called Cloudsec Asia. Mahagitsiri is also one of Zipmex’s major creditors.

Mahagitsiri owns 10% of Cloudsec Asia through his venture unit V Ventures Technologies Company. The source revealed that V Ventures is also an existing investor in Zipmex, having participated in its Series B round in September last year.

Zipmex said it has requested to meet with Thailand’s Securities Exchange Commission to present the potential investors and a recovery plan.

Financial Difficulties Amid Crypto Market Downturn

Last month, precisely on July 21^st, Zipmex suspended withdrawals, citing volatile market conditions and financial difficulties that pushed it to make such a decision.

The exchange is headquartered in Singapore, but also has offices internationally, in Australia, Thailand, and Indonesia.

Zipmex ran into a liquidity crisis after its exposure to embattled Babel Finance and Celsius network went sour, forcing it to halt withdrawals and file for protection from creditors in July. Since then, the exchange has partially released some of the token withdrawals.

On July 28th, Zipmex’s solicitors filed for bankruptcy protection in Singapore, seeking moratoriums to prohibit legal proceedings against the exchange for up to six months.

The firm is currently under a moratorium until 2^nd December that provides it protection from creditors while it devises a recovery strategy and finalizes investors for fresh funding.

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Tagged : BANKRUPTCY RESTRUCTURING / Crypto Exchange / News / Zipmex

Hodlnaut Applies for Court Protection amid Liquidity Crises

by Blockchain NewsAugust 17, 2022

Hodlnaut, a Singapore-based digital currency lending platform, has joined its counterparts in seeking out the protection of the courts with its recent application for Judicial Management.

The crypto lending firm leaked some hints in a little more than a week since it announced it will be halting withdrawals based on its platform in response to the unfavourable market condition.

With the Judicial Management pursuit, Hodlnaut said it will be shielded from investors who may want to seek legal redress for losing their funds. The Judicial Management process will also present a form of a moratorium, granting the embattled crypto lender complete protection for a while.

“As we work towards stabilising our financial situation, the Founders and the Hodlnaut team in Singapore are working closely with our lawyers and have weighed various available options for our next steps,” the latest Hodlnaut announcement reads.

“We are aiming to avoid a forced liquidation of our assets as it is a suboptimal solution that will require us to sell our users’ cryptocurrencies such as BTC, ETH, and WBTC at these current depressed asset prices. Instead, we believe that undergoing judicial management would provide the best chance of recovery. Therefore as of 13 August 2022, Hodlnaut Pte Ltd filed an application with the Singapore High Court to be placed under judicial management.”

According to Hodlnaut, it has requested the court to appoint Tam Chee Chong of Kairos Corporate Advisory Pte Ltd to be appointed as the Interim Judicial Manager and, subsequently, the Judicial Manager.

The move from Hodlnaut is somewhat related to the earlier move from Zipmex and Vauld Group, both of whom have also halted withdrawals and have landed a moratorium from the Singapore High Court. While the Vauld Group earned its moratorium earlier this month, Zipmex’s was issued this week, as reported by Blockchain.News.

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Tagged : Hodlnaut / Legal / MORATORIUM / Zipmex