Exclusive

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.

THE SCOOP

Keep up with the latest news, trends, charts and views on crypto and DeFi with a new biweekly newsletter from The Block's Frank Chaparro

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