Cryptocurrency exchange Zipmex has reportedly not received the latest payment under its purchase agreement with venture capital firm V Venture. The exchange sent a letter to the firm warning that it will have to start liquidating one of its units without that money.
The $1.25 million payment was meant to provide working capital for the Singapore-based exchange and was due on March 23. according to a Bloomberg report. Zipmex said in a letter to V Venture that without the cash injection, it would have to start liquidating its Zipmex Technology unit and suspend its payroll.
Salaries at Zipmex units in Thailand, Singapore and Indonesia were still covered, the letter added. Zipmex also has operations in Australia.
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The late payment would be the fourth for V Venture, a subsidiary of Thai shipping company Thoresen Thai Agencies with offices in Thailand and the United States. Zipmex and V Venture reached an agreement in December for the venture firm to buy the exchange after lengthy negotiations.
zipmex withdrawals suspended in July after a deal for its acquisition by Coinbase fell through. The exchange was experiencing liquidity problems due to its exposure to Babel Finance, which reportedly owed Zipmex $48 million and withdrawals suspended in June. zipmex too had an exposure of $5 million to centigrade In February, it proposed to investors to restore all withdrawals.
The bailout plan for embattled crypto exchange Zipmex is beginning to unravel after the company failed to receive the most recent payment due under a $100 million venture capital buyout. https://t.co/l6gDYpmO6I
โBloomberg Asia (@BloombergAsia) March 24, 2023
zipmex received three months of protection from creditors in August. The December V Venture Deal triggered an investigation by the Securities and Exchange Commission of Thailand. Had conflict with that agencyand in the past.
The Zipmex tab fell from a high of $0.1029 on March 23 to $0.057 at the time of writing, according to CoinMarketCap.
Neither Zipmex nor V Venture immediately responded to a Cointelegraph request for comment.
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