Shortly after pausing withdrawals, the exchange started a restructuring process after getting three months of creditor protection from Singapore’s High Court.
It is now claimed that a venture firm is looking to buy up a 90% stake in the ailing exchange for around US$100 million, the proceeds of which are reportedly to be used to unlock frozen customer accounts by April 2023.
Zipmex talks – a long time coming
Around a month ago, Zipmex confirmed that it was in talks to salvage what was left of the platform.
Not long after pausing withdrawals, Zipmex asked the court to extend creditor protection until April 2023, presumably on the hopes of a possible investment.
Despite initially pausing withdrawals, some services have resumed with customers reporting that they have been able to withdraw some crypto, albeit in trivial quantities.
Now after weeks of reported negotiations, a venture capital fund V Ventures is allegedly close to a deal with the exchange for a 90% stake. It’s been said that the investment is around US$ 100 million, comprising US$30 million cash and the balance in digital assets.
It isn’t clear which crypto assets will be included in the transaction, but it’s thought that they will be used to unlock frozen customer deposits before April 2023.
For users that have been patiently waiting to withdraw their crypto, the news that a deal is close to being finalised will no doubt be welcome. However, that’s just the beginning as it isn’t entirely certain that the investment will be used to make all customers whole again. In its bankruptcy, BlockFi asked the court to enable it to redeem customer deposits frozen on the platform, but the outcome of that remains uncertain.