Singapore-based Zipmex is considering a possible buyout offerZipmex had earlier halted its withdrawals citing extreme market conditions
Singapore-based cryptocurrency exchange Zipmex has tweeted a new announcement stating that it’s currently in talks with “interested parties” considering a possible investment/buyout.
The exchange has joined the growing bandwagon of crypto platforms that had halted its withdrawals three days ago citing “extreme market conditions.”
Crypto Exchange Zipmex Contemplates A Possible Offer
On July 24, the exchange took to Twitter to inform its users about a potential buyout that the firm is currently in talks with. The firm has not yet disclosed the name of the entity interested in buying Zipmex citing “confidentiality obligations.” The exchange further added that the buyout talks are progressing “positively” indicating a favorable stance.
The tweet further added that the exchange has also commenced “due diligence,” a legal term that usually refers to an assessment done by a prospective buyer to evaluate the assets and liabilities of the firm.
📢 Important Announcement 📢
Our conversations with various interested parties have progressed significantly. One of those parties has offered terms in an MOU which includes confidentiality obligations so as to be able to commence Due Diligence. #zipmex
— ZIPMEX (@zipmex) July 24, 2022
In addition to this, the exchange also tweeted that it was offered an MOU, a non-binding agreement that usually denotes the commencement of negotiations from both parties to reach a favorable consensus.
Three days ago, Zipmex had halted its withdrawals and deposits citing “volatile market conditions.” The exchange has now joined the growing list of crypto platforms like Celsius Network and Voyager that were recently swept away in the surge of harsh crypto winter.
Due to a combination of circumstances beyond our control including volatile market conditions, and the resulting financial difficulties of our key business partners, to maintain the integrity of our platform, we would be pausing withdrawals until further notice.
— ZIPMEX (@zipmex) July 20, 2022
Per a Bloomberg report, the firm’s financial troubles stemmed due to its financial dealings with crypto lenders Babel and Celsius. According to the firm’s Facebook page, Zipmex had $48 million and $5 million of exposure to Babel and Celsius Network.
The Zipmex token has responded positively to the news and is up 5% since the firm tweeted that it’s considering a possible buyer offer. At press time, the token is sitting at $0.3098.
Image: Zipmex/Twitter
