Zipmex requests 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 firm’s “recovery plan.”

In a statement on Aug. 25, Zipmex said it had submitted a letter requesting meetings with the securities regulator, which will also be attended by the firm’s potential investors.

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

Though the company was tight-lipped on who the investors may be, Zipmex noted that it was in “advanced stages” of discussion with two investors after signing three memorandums of understanding (MOUs) over the last month.

The funding round was initially reported in June, suggesting the potential capital injection was not tied to the company’s more recent financial woes.

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

Despite the lack of names at this stage, the funding round is reportedly expected to be worth $40 million at a valuation of $400 million. Notably Coinbase has already made an undisclosed strategic investment into Zipmex during Q1.

The requested discussions with the SEC come one month after the regulator launched a hotline for investors impacted by the withdrawal suspensions to report their complaints on the matter.

On Aug. 15, Cointelegraph reported that the company had scored more than three-months of creditor protection, protecting the exchange from potential creditor lawsuits until Dec. 2, 2022 while it comes up with a restructuring plan.

With regulator eyes on Zipmex, the upcoming discussions should bear important information about how the company can proceed moving forward. Zipmex stated that it will soon provide further clarification on the matter around the middle of September.

Zipmex also revealed on Thursday that wallet transfers for its native token ZMT between its Z Wallets and Trade Wallets have been re-established this week, marking further progress as the company works to get fully operational again. This is only available via its website and not through the Zipmex App at this stage however.

— ZIPMEX (@zipmex) August 25, 2022

“By resuming the Z Wallet service and doing everything possible to resolve the aforementioned problems. I can confirm that we will continue to move forward to resume services to serve our customers effectively and fairly,” said 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. As a result of the market volatility this year and exposure to firms such as Babel Finance and Celsius, Zipmex officially paused wallet withdrawals in late July.

Since then, Zipmex has gradually restored withdrawals for a select number of assets held in Z Wallets, while trade wallet withdrawals were promptly re-enabled in July.