Zipmex to sell 90% of its equity to V Ventures for $100M

After declaring bankruptcy, the South Asian cryptocurrency exchange Zipmex is selling 90% of its equity to an existing investor at the company for about $100 million. There are still a lot of loose ends to tie up before the agreement can be confirmed.

TheBlock, citing a source and several documents, reports that there are some challenges in the deal’s implementation and some criteria that could cause the agreement to fall through. The unnamed source said that V Ventures, a VC firm headed by Chalermchai Mahagitsiri, the son of Thai billionaire and coffee king Prayudh Mahagitsiri, is completing a deal to invest $100 million in Zipmex with the intention of acquiring 90% of the company’s ownership.

With 90% of the firm’s stocks, the venture capital firm would become the owner of the cryptocurrency exchange, according to the source, and the sale may close up to coming Friday with a number of conditions that must be met.

The conditions listed in the report include a three-year employment contract signed by all executives at the firm and a personal guarantee signed by co-founders Marcus Lim and Akalarp Yimwilai and Chief Marketing Officer Proud Limpongpan to make any damage that V Ventures might experience.

Bankrupt Zipmex 

However, Limpongpan’s refusal to sign the guarantee in question has put the agreement in doubt. Lim responded, “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.” 

In the past months, Zipmex suspended withdrawals as a result of the unfavorable crypto market. Notably, there was speculation that Zipmex had partially reopened their withdrawals at one point. In light of its numerous problems, the trading company filed for bankruptcy and requested protection from its creditors so that it could come up with a restructuring plan.