Zipmex says it received rescue offer after talks with 'interested parties'

Quick Take

  • Zipmex discussed the possibility of a rescue deal, noting interest from an unidentified party.
  • Last week, the South Asian exchange froze clients’ funds after citing financial difficulties.

Zipmex, an embattled South Asian crypto exchange, said it has received an offer regarding a potential rescue deal. 

In a Twitter post today, the exchange discussed the possibility of a bailout, noting that one party had offered deal terms in a confidential memorandum of understanding (MOU).  Zipmex did not identify the party nor specify whether the offer might be an investment or a buyout proposal.

“Our conversations with various interested parties have progressed significantly.  One of those parties has offered terms in an MOU [memorandum of understanding] which includes confidentiality obligations so as to be able to commence Due Diligence,” the exchange said.

On Thursday, the firm halted all customer withdrawals on its platform, citing "financial difficulties" of its partners. As such, it was clear that Zipmex was the latest to face cascading effects of a financial crisis in the crypto sector. 

The exchange disclosed that it had a $48 million exposure to Babel Finance and Celsius, two crypto firms that have defaulted on loans after accruing severe losses in the crypto market.

Later, Zipmex resumed withdrawals from Trade Wallet, likely providing relief to some of its customers. Still, clients’ funds deposited in the Z Wallet, a second type used by the exchange for paying rewards, have continued to be inaccessible.

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