Regulator orders Zipmex to clarify deal payments

Regulator orders Zipmex to clarify deal payments

Zipmex organises its Crypto Arcade and Experience Center at a shopping mall in Bangkok in January last year. (File photo)
Zipmex organises its Crypto Arcade and Experience Center at a shopping mall in Bangkok in January last year. (File photo)

The Securities and Exchange Commission (SEC) on Monday ordered cryptocurrency exchange Zipmex to clarify news that emerged on Friday regarding its Singapore parent not receiving the latest payment under its buyout agreement with venture capital firm V Ventures Technologies.

Zipmex said in a letter to V Ventures, a subsidiary of SET-listed shipping company Thoresen Thai Agencies, that without the cash infusion, it would have to begin liquidating its Zipmex Technology unit and suspend its payroll, according to a Bloomberg report.

The US$1.25 million payment was intended to provide working capital for the Singapore-based exchange and was due March 23.

The missed payment would be the fourth from V Ventures.

Zipmex and V Ventures reached a deal in December for the latter to buy the exchange.

“The SEC sent a letter to Zipmex on March 24, asking the company to clarify the facts about the case to the SEC, as well as the impact to the company and its customers,” the regulator said in a statement.

Zipmex was also asked to inform the SEC by Wednesday about its current policy direction, with the information to be revealed to investors, the statement said.

The SEC office said it follows up on such cases and takes action in accordance with its authority under the law and regulations.

Akalarp Yimwilai, chief executive of Zipmex Thailand and co-founder of Zipmex Group, said on his Facebook page the company continues to operate as usual and has no plans to shut down.

“The management including myself have talked to the new investor to speed up the payment, according to the plan,” said Mr Akalarp.

“The priority for us is to negotiate with the investor and settle the issue first.”

The price of the Zipmex token, ZMT, has dropped more than 70% since March 23.

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