Zipmex close to signing $100 million rescue deal in return for a 90% stake

Quick Take

  • Troubled exchange Zipmex close to signing a rescue package worth over $100 million deal, a source tells The Block.
  • But the deal comes with conditions that could break it, the source said.

Troubled South Asian crypto exchange Zipmex is close to signing a $100 million rescue package with an existing investor — although final hurdles remain before the deal can be completed. 

V Ventures, a venture capital firm founded by Chalermchai Mahagitsiri, son of Thai billionaire and coffee king Prayudh Mahagitsiri, is on the cusp of allocating additional funds in return for a 90% stake in Zipmex, according to a person with direct knowledge of the matter and documents seen by The Block. There are conditions attached that could still break the deal, the person said.

Zipmex halted client withdrawals in July due to its exposure to Babel Finance and Celsius, two beleaguered crypto lenders that froze customer funds in June. Zipmex has estimated its total exposure to Babel and Celsius at $53 million. The Block reported in August that Chalermchai Mahagitsiri was among two investors with whom Zipmex was in talks for a bailout.

V Ventures expects to close the deal on Friday if the final conditions can be agreed, the person said. One requirement is that Zipmex's key executives all agree to three-year employment contracts, which bar them from leaving the company. Another condition is that co-founders Marcus Lim and Akalarp Yimwilai and chief marketing officer Proud Limpongpan sign personal guarantees to make good any losses V Ventures may suffer, the person said.

However, Limpongpan has made it clear that she won't sign the guarantee, according to correspondence between the executive and V Ventures executives seen by The Block.

Limpongpan declined to comment to The Block, saying "I cannot comment as I am no longer a full time employee of Zipmex and operating as a consultant since the beginning of August."

Start your day with the most influential events and analysis happening across the digital asset ecosystem.

By signing-up you agree to our Terms of Service and Privacy Policy