Jump to content

Ongoing ZIPMEX crisis


Gaccha
 Share

Recommended Posts

Although all the signs look like they will be bought (perhaps by MUFG or FTX) and that might save the frozen customer funds,  this will take several weeks at least,  and the Thai SEC appears to have set up an online form for all affected users (those using the ZipUp product) to ensure a direct communication line for customers:

 

"The SEC itself wants to make it more convenient for customers of Zipmex Thailand so it has provide an online filling form as well, it said." Nation Newspaper.

 

This badly worded paragraph seems to suggest the form is on the SEC site.

 

I am unable to find this form, but it could be very useful for future lawsuits. Anyone found the link?

 

 

  • Haha 1
  • Thanks 1
Link to post
Share on other sites

To update, ZIPMEX have signed two MOUs so far. If the due diligence is satisfactory these are likely to lead to binding contracts. 

 

They have declared a preference for investments over a buyout but given their destruction of their brand's reputation this is a rather surprising and bold move. 

 

If cryptos continue to rise in value, Babel Finance will be able to deleverage gradually and restart payments of the debt owed to Zipmex. Babel Finance suffered a collapse in 2020 which they recovered from by waiting it out until cryto regained in value. 

 

Zipmex have announced they have initiated legal action against Babel. This seems rather pointless unless they hold priority debt. 

Link to post
Share on other sites

  • 2 weeks later...

They are slowly clarifying their plan. The clock is ticking.

 

They have roughly 25 days remaining until the creditor moratorium expires and they become vulnerable to vulture creditors. They have said they have signed 2 MOUs, at least one appears to be a serious foreign investor. And they have staked their (damaged) name on returning the major frozen funds within 2 weeks (i.e. the big coins such as bitcoin or stablecoins).

 

Zipmex are carefully attempting to ensure there is no 'bank run' by gradually returning funds. They've started with coins with few owners (such as SOL).

 

They are moving the money into the Trade Accounts over several weeks to minimise panic sells. They'll really needing to be canny about this as the ZipUp frozen accounts has caused colossal brand damage. 

 

The next 3 weeks are critical. 

Link to post
Share on other sites

  • 2 weeks later...

To update,

 

Singapore has awarded Zipmex 3 months bankruptcy protection, which enables them to be protected from creditor litigation for that period. They have that time to either find a buyer or fresh cash. They currently have two MOUs signed. 

 

They have unfrozen all funds from the investment product portfolios of minor Altcoins and have also unfrozen small amounts of ETH and BTC (around 5,000 bahts worth each). Although trivial amounts, this does actually fully compensate 60% of investors. 

 

They have just announced that all ZMT will be unfrozen from the 25th August. 

 

As things stand, all stablecoin money remains frozen in the investment portfolios. And enormous sums of ETH and BTC remain frozen.

 

Presumably, until/unless they have new cash, they will not be able to unfreeze any further. The next 10 weeks will be crucial. 

Link to post
Share on other sites

  • 3 months later...

This afternoon, Zipmex secured an extension of creditor protection in the Supreme Court of Singapore until April 2023.

 

Interestingly, according to the press reports, the judge has required that any takeover must be agreed by 21st December. This is presumably the press reporter not grasping the intricacies of the judge's ruling. Presumably, the judge was referring to the current takeover offering only. 

 

V Ventures has laid an offer on the table to buy Zipmex, but Zipmex's ability to grasp defeat from the jaws of victory should not be underestimated. So although any rational person would have grabbed this offer, the rather notoriously stubborn marketing director refused to sign onto it placing the whole deal in peril. The judge has given her a chance to rethink her behaviour.

 

If there is to be a deal, it should happen in around 2 weeks. 

Link to post
Share on other sites

On 12/2/2022 at 5:55 PM, Gaccha said:

the judge has required that any takeover must be agreed by 21st December. This is presumably the press reporter not grasping the intricacies of the judge's ruling. Presumably, the judge was referring to the current takeover offering only. 

As I thought... the report has been corrected:

 

"CORRECTION (Dec. 2, 11:08 UTC): Corrects that Dec. 21 was set for hearing superpriority claims. An earlier version of this story said it was a deadline for a takeover agreement. Adds details of Bloomberg report on V Ventures deal."

 

This is still ambiguous. It might be a way to gain court recognition of the new investment as having priority over all other creditors. In the alternative, it might be a way for certain creditors such as the lawyers etc dealing in the bankruptcy protection gaining priority recognition. 

Link to post
Share on other sites

The deal agreed upon divides the customer creditors into two groups. People with less than 5,000 dollars of value will be presumed to agree to the deal. Those with more than 5,000 dollars must be persuaded to agree. There will be a roadshow in Thailand and Singapore to persuade them. 

 

The deal seems vulnerable to litigation for several reasons but the most obvious are:

 

The deal treats creditors differently depending on jurisdiction and, incredibly, expects regulators to go along with this. The judge was shocked that this matter had not been more thoughtfully dealt with. 

 

The value to be returned will be that of July 2022, which not only removes credited extra amounts of "interest", but ignores the value cost of losing access to the money for one year. 

Link to post
Share on other sites

  • 3 weeks later...

As an update, although no news services have confirmed this, V Ventures, the venture capitalists who agreed to buy Zipmex for 100 million for a 90% share, have already provided the first tranche (I find it odd that the word "tranche" is used in this situation for lots of complex reasons that I won't go into).

 

 

 

Apparently, they'll make themselves a creditor to the company in 5 batches of credit before then becoming an owner in April. At any point, I believe they could still back out but it seems a surprisingly canny investment so that is unlikely. Several experts have pointed out, to my surprise, that the debt owed by the bankrupt Babel Finance (around 35 million) is likely to be retrieved by Zipmex. 

 

 

Link to post
Share on other sites

A post with a link to the Bangkok Post has been removed.

 

16. The Bangkok Post, Khaosod, Pattaya Mail, Phuket News and the Thaiger do not allow quotes from their news articles or other material to appear on ASEAN NOW. Neither do they allow links to their publications. Posts from members containing quotes from or links to the Bangkok Post, Khaosod, Pattaya Mail, Phuket News and the Thaiger publications will be deleted from the forum. These restrictions are put in place by the above publications, not by ASEAN NOW. In rare cases, forum administrators or the news team may use these sources under special permission.

Link to post
Share on other sites

  • 3 weeks later...

My understanding is Zipmex have now received the second "tranche" of debt. They have also unfrozen the "Gold Coin" crypto, a stablecoin intended to match the value of gold. 

Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share

  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...