After pausing withdrawals like Babel Finance and Celsius, Zipmex has had talks with a number of interested investors and a memorandum of understanding (MoU). This could likely buy out the Singapore-based crypto exchange.
Zipmex tweeted that talks with various parties have been progressing significantly. However, it did not describe the nature of the deal or the name of the prospective buyer. Zipmex only revealed that the investor sought to commence Due Diligence. This is common in mergers and acquisitions. It enables potential buyers to take a deeper step into a company, particularly its financial statements.
The crypto exchange had to suspend withdrawals because it has $48 million in exposure to Babel Finance and $5 million in exposure to Celsius. A good number of crypto firms have been dramatically hit by the downturn in the global cryptocurrency market. But some companies like FTX have taken it as an opportunistic deal to sign deals, recently the Sam Bankman-Fried company signed a deal with BlockFi, that includes an option to acquire the company for up to $240 million.
Reports highlight that Zipmex has been in discussions with Coinbase regarding a potential acquisition in March, but the latter only made a strategic investment. Last week, Zipmex tweeted that due to circumstances beyond its control, it was suspending customer withdrawals. The platform attributed it to volatile market conditions. On July 20, it said resulting in financial difficulties of its key business partners, it’s difficult to maintain the integrity of Zipmex, as such, it took the decision to pause withdrawals until further notice.
It has re-enabled customer withdrawals for its Trade Wallet. However, Zipmex’s Zwallet – wherein users can deposit funds to earn bonuses and rewards, remains offline.