Zipmex's rescue investor now wants to pay only 10 to 20 cents on the dollar

Quick Take

  • Zipmex’s rescue investor failed to deliver its promised 100% payment.
  • V Ventures now only wants to pay 10 to 20 cents on the dollar to creditors, according to a letter obtained by The Block.

In a shocking turn of events, Zipmex's rescue investor now wants to give only 10 to 20 cents on the dollar to the troubled exchange's creditors. It initially pledged to provide 100% payment.

"We are instructed that in early April 2023, the Subscriber has now verbally represented that the Subscriber is now only prepared to consider a compromise to creditors in the Schemes that results in a return to creditors of between 10c to 20c on the dollar of their existing debt," Zipmex's lawyers, Morgan Lewis Stamford, wrote to the Supreme Court of Singapore on Thursday in a letter that The Block obtained.

Zipmex did not name the investor in the letter, which was also sent to its creditors. Still, The Block has previously reported that V Ventures initially signed a $100 million deal with the company late last year in return for a 90% stake in it. Last month, V Ventures missed a fourth tranche payment worth $1.25 million to Zipmex — leaving the company unable to pay specific staff and at risk of liquidation. That tranche still hasn't arrived, a source with direct knowledge of the matter told The Block.

Zipmex ran into trouble last July when it halted client withdrawals due to its exposure to Babel Finance and Celsius — two beleaguered crypto lenders that themselves froze customer funds in June. Zipmex has estimated its total exposure to Babel and Celsius to be $53 million.


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As the deal with V Ventures increasingly appears at risk of falling through, Zipmex "has identified at least two potential investors" in Thailand, per the letter.

Zipmex has until April 23 to sort out its financial issues, when its protection from creditors expires. The company plans to apply for a further extension, per the letter.

Zipmex did not immediately respond to The Block’s request for comment.

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Yogita Khatri is a senior reporter at The Block, covering all things crypto. As one of the earliest team members, Yogita has played a pivotal role in breaking numerous stories, exclusives and scoops. With nearly 3,000 articles under her belt, Yogita holds the records as The Block's most-published and most-read author of all time. Prior to joining The Block, Yogita worked at crypto publication CoinDesk and The Economic Times, where she wrote on personal finance. To contact her, email: [email protected]. For her latest work, follow her on X @Yogita_Khatri5.


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