There soon might be an end to the financial troubles of the Singapore-based crypto exchange should it agree to the demands of Chalermchai Mahagitsiri – a potential investor.
As per an email seen by The Block, the son of Thai billionaire and coffee king Prayudh Mahagitsiri, there is a request that Marcus Lim, CEO of Zipmex forfeits all of his shares in the company upon closing of the deal.
An extract from the email reads: “We request the Zipmex Team to prepare a confirmation letter of your share forfeiture for you to sign and to take effect at closing,”
Mahagitsiri’s request follows an earlier report by Bloomberg which details that shareholders and potential investors are demanding that Marcus and co-founder Akalarp Yimwilai leave their position in management. The investors argued that their management decisions led to a severe cash crush for the exchange.
Although Akalarp has agreed to the investor’s request, Marcus will be compelled to exit his position if the majority of the shareholders demand a change in leadership.
Before now, the exchange had organized a meeting between Thailand’s SEC and its prospective investors to propose a recovery plan to remain afloat. According to its plan, Zipmex chose KordaMentha Pte Ltd to serve as its financial advisor as it assists the company with its restructuring.
Following the effect of the bearish crypto market, the exchange platform paused withdrawals on its platform. Although at some point it was rumored that Zipmex partially resumed withdrawal. After filing for bankruptcy following its several troubles, Zipmex sought a six-month moratorium to protect it from aggrieved creditors while it worked out a restructuring plan.
However, the Singaporean High Court in charge of its proceedings approved a three months moratorium for the exchange. According to the judge, Zipmex has up until December 2 to sort its liquidity crisis without facing lawsuits from aggrieved creditors.
Recently, Zipmex together with its CEO was indicted by Thailand’s regulators for non-compliance with an order.
According to the SEC, it tried to confirm the exchange’s compliance with the Digital Assets Business Act available in the country after Zipmex started having issues with its ZipUp+ program. The regulator said Zipmex refused to submit the complete requested information pertaining to its business operations.