Plans to rescue struggling Thai cryptocurrency exchange Zipmex seem to be falling apart. According to a recent report, the exchange did not receive the latest payment of a $100 million venture capital buyout due on March 23.
The report cited a letter stating that the company has yet to receive the agreed payment of $1.25 million on Thursday as part of its $100 million acquisition deal with V Ventures., a subsidiary of Thoresen Thai Agencies Pcl.
According to the letter, Zipmex ought to receive funding in three tranches, and it has not received any indication about the timing or likelihood of the latest payment. The exchange added that it is collaborating with its advisors to determine the appropriate course of action.
Zipmex confirmed that it possesses sufficient funds to compensate its employees in the Thailand, Singapore, and Indonesia branches. Unless it receives the necessary funds, the company would initiate liquidation proceedings for its unit, Zipmex Technology Co., and halt its payroll.
Last summer, the Asian cryptocurrency exchange declared a suspension of withdrawals due to unstable market circumstances. The exchange encountered a liquidity crunch after it was exposed to the distressed cryptocurrency lender Babel Finance.
Thailand’s Securities and Exchange Commission (SEC) initiated an investigation into Zipmex in January to examine whether the company’s profit-generating offerings had breached any regulatory requirements. The regulator also scrutinized actions that might contravene the terms of service for digital asset providers.
The Thai SEC sent a letter to Zipmex, stating that two of its products, ZipUp and ZipUP+, had breached digital asset business regulations. These products, which offered customers the ability to earn interest on their investments, were deemed to violate regulations, but the specific violations were not disclosed in the report.
The Thai SEC’s investigation was one of its continuing endeavours to guarantee adherence to regulatory standards within the nation’s financial industry and safeguard investors against possible fraud or misconduct.
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