Venture capitalists bail on Zipmex bailout, company warns of consequences: Report


Cryptocurrency trade Zipmex has reportedly not acquired the most recent fee below its buyout settlement with enterprise capital agency V Enterprise. The trade has despatched a letter to the agency warning that it must start liquidating considered one of its models with out that cash.

The $1.25 million fee was meant to offer working capital for the Singapore-based trade and was due March 23, according to a Bloomberg report. Zipmex stated in a letter to V Enterprise that, with out the money infusion, it must start liquidating its Zipmex Expertise unit and droop its payroll.

Salaries in Zipmex models in Thailand, Singapore and Indonesia had been nonetheless coated, the letter added. Zipmex additionally has operations in Australia.

Associated: Digital asset platform Zipmex partners with Visa in Asia-Pacific

The missed fee can be the fourth from V Enterprise, a subsidiary of Thai delivery firm Thoresen Thai Companies with places of work in Thailand and the USA. Zipmex and V Enterprise reached a deal in December for the enterprise agency to purchase the trade after prolonged negotiations. 

Zipmex suspended withdrawals in July after a deal for its acquisition by Coinbase fell via. The trade was experiencing liquidity points as a result of its publicity to Babel Finance, which reportedly owed Zipmex $48 million and suspended withdrawals in June. Zipmex additionally had $5 million exposure to Celsius. In February, it proposed to investors to revive all withdrawals.

Zipmex was granted three-month protection from collectors in August. The December V Enterprise deal triggered an investigation by the Thai Securities and Trade Fee. It had run afoul of that agency previously.

The Zipmex token fell from a excessive of $0.1029 on March 23 to $0.057 on the time of writing, in keeping with CoinMarketCap.

Neither Zipmex nor V Enterprise replied instantly to a Cointelegraph request for remark.

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