Zipmex CEO Marcus Lim is under scrutiny by investors and shareholders, some of whom are calling for his resignation.
They allege that mismanagement is the cause of the exchange, which had a liquidity crunch with troubled lender Babel Finance, which resulted in withdrawals being halted in July 2022.
Earlier today, a Singapore court granted the exchange three months’ relief from debt obligations till December 2, 2022, protecting the firm from litigation. The firm had initially sought five months’ relief to allow the restructuring.
Its financial woes partly stemmed from exposure to Babel Finance, a crypto lending platform that halted withdrawals in mid-June 2022. Babel hired the law firm Kirkland & Ellis and an investment bank to assist with its restructuring.
It’s up to the board, says Lim
Lim’s resignation was reportedly sought by one of Zipmex’s largest shareholders. Asked about this, Lim said the fate of executive positions rests with the board and shareholders. Lim said any changes would follow a resolution to the exchange’s immediate problems. He said a recovery plan was an essential item on the agenda of the management team. It is not clear whether many shareholders are unhappy with Lim’s management.
On August 2022, Zipmex announced that it would allow XRP, ADA and SOL withdrawals in one week. On August 7, 2022, the company announced a partial reinstatement of bitcoin and ether from August 11, 2022 to August 16, 2022, after the Thai Securities and Exchange Commission ordered the company’s Thai branch to unfreeze client assets. Sixty percent of users will have access to five coins by August 16, 2022.
Whether the remaining 40% can be withdrawn depends on whether Zipmex can raise more capital. Anonymous sources told Bloomberg that they would only invest money in the platform if Lim resigned. The company’s website indicates that interested investors are visiting the company’s financial position.
Zipmex joins Wald in postponement land
While the judge granted Jipmax an adjournment from creditors, he said a creditors committee should be formed to attend to the creditors in a town hall.
Another crypto company, Wald, was given a three-month moratorium from a Singapore judge to protect it from creditors as it considers a possible takeover with lender Nexo.
Two important events that contributed to the liquidity crunch at lenders Celsius Network, Voyager Digital, Babel Finance and Zipmex were the May 2022 collapse of the TeraUSD stablecoin and the explosion of Three Arrows Capital. The Singapore-based hedge fund has since filed for bankruptcy.
Zipmex holds a digital asset trading license from the Thai Securities and Exchange Commission and has a presence in Australia and Indonesia.
be for[In]Latest Bitcoin (BTC) Analysis of Crypto, click here,