Crypto Exchange Zipmex About To Accept $100 Million Buyout
- South Asian crypto exchange Zipmex is about to sell 90% of its equity for around $100 million to an existing investor at the firm but the deal has yet to be finalized.
- V Ventures, a venture capital firm founded by the son of Thai billionaire and coffee king Prayudh Mahagitsiri, Chalermchai Mahagitsiri, has offered the capital.
- A source said that if all the conditions are met, V Ventures could close the deal as late as Friday, and with 90% of the firm’s equities, it would make the VC firm the owner of Zipmex crypto exchange.
Zipmex, a South Asian crypto exchange that recently filed for bankruptcy, is about to sell 90% of its equity for around $100 million to an existing investor at the firm. The deal hasn’t been finalized yet and there are many conditions that need to be fulfilled before it can be confirmed.
According to TheBlock which cites a source and a few documents, there are a few hurdles before the deal is complete, and a few conditions exist that could break the deal.
The source, which remains unnamed, revealed that V Ventures, a venture capital firm founded by the son of Thai billionaire and coffee king Prayudh Mahagitsiri, Chalermchai Mahagitsiri, is finalizing the deal to invest $100 million in Zipmex but aims to acquire 90% of the company’s equity.
Interestingly, the crypto exchange filed for bankruptcy following similar filings from crypto lending firms Celsius Network and Babel Finance, which halted withdrawals in June. According to CNBC, Zipmex expected its exposure to these crypto lenders to be around $53 million.
The source said that if all the conditions are met, V Ventures could close the deal as late as Friday, and with 90% of the firm’s equities, it would make the venture capital firm the owner of the crypto exchange. However, as mentioned earlier, there are a few requirements that are needed to be fulfilled.
Two of the requirements, as per the report, include co-founders Marcus Lim and Akalarp Yimwilai and Chief Marketing Officer Proud Limpongpan signing a personal guarantee to make whole any loss that V Venture might suffer and also, all the executives at the firm are needed to sign a three-year employment contract, i.e., for at least three years, they cannot work for any other firm under any circumstances.
However, Limpongpan stated that she wouldn’t be signing the guarantee mentioned above, which has jeopardized the deal and when asked about the same, Lim stated that “as talks reach a critical and sensitive stage with our potential investor, I am unable to comment as all parties are under NDA and we do not want to jeopardize the deal.”
Lim, who is also the CEO of the company, has said that he won’t step down until he pays off the loans that the company still owes to its creditors, according to a previous report from BitcoinWisdom. He stated that he will pay off the firm’s debts and is also working to returns the funds belonging to approximately 400,000 customers that have their entire holdings stuck due to withdrawal halt.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
