Zipmex calls for meetings with Thai regulators to discuss ‘recovery plan’

Zipmex calls for meetings with Thai regulators to discuss ‘recovery plan’

Zipmex calls for meetings with Thai regulators to discuss ‘recovery plan’

Asian crypto exchange Zipmex has requested meetings with Thailand’s Securities Exchange Commission (SEC) and other regulators to discuss the company’s “recovery plan.”

In an Aug. 25 statement, Zipmex said it had submitted a letter requesting meetings with the securities regulator, which would also be attended by potential investors in the company.

“We have requested meetings with the Securities Exchange Commission of Thailand and regulators in the country where we operate to introduce our investors to regulators and present our recovery plan to government agencies.”

Although the company has been tight-lipped on the identities of the investors, Zipmex noted that it is in “advanced stages” of discussions with two investors after signing three memorandums of understanding (MOUs) over the past month.

The funding round was originally announced in June, suggesting the potential capital injection was unrelated to the company’s most recent financial troubles.

“The investors we have spoken with fully understand our potential and also share our vision and mission of developing the digital economy in Thailand and Southeast Asia,” Zipmex said.

Despite the lack of names at this point, the funding round is expected to be worth $40 million at a valuation of $400 million. Notably, Coinbase already made an undisclosed strategic investment in Zipmex during the first quarter.

The requested talks with the SEC come a month after the regulator launched a hotline for investors impacted by withdrawal suspensions to report complaints about it.

On August 15, Cointelegraph reported that the company had been granted more than three months of creditor protection, shielding the exchange from possible creditor lawsuits until December 2, 2022, while it develops a restructuring plan. .

With the regulator’s eyes on Zipmex, the upcoming talks should provide important insights into how the company can move forward. Zipmex said it would soon provide further clarification on the matter around mid-September.

Zipmex also revealed on Thursday that wallet transfers for its native token ZMT between its Z wallets and commercial wallets were restored this week, marking further progress as the company strives to become fully operational again. This is only available through its website and not through the Zipmex app at this point.

“By resuming the Z Wallet service and doing everything possible to resolve the above-mentioned issues. I can confirm that we will continue to move forward to resume the services in order to serve our customers efficiently and fairly,” said the Dr. Akalarp Yimwilai, co-founder of Zipmex.

Related: Thai SEC approves four crypto firms despite Zipmex woes

The company operates compliant exchanges in Thailand, Indonesia, Singapore, and Australia. Due to market volatility this year and exposure to companies such as Babel Finance and Celsius, Zipmex officially suspended wallet withdrawals at the end of July.

Since then, Zipmex has gradually reinstated withdrawals for a number of assets held in Z wallets, while withdrawals from commercial wallets were quickly reactivated in July.