Zipmex co-founder Marcus Lim has said he won’t resign from his position.One minority shareholder had needed his resignation.Zipmex happens to be undertaking several ways of better its budget and contains filed for bankruptcy protection.
Marcus Lim, the co-founder of exchange Zipmex, has said he won’t resign. The exchange is experiencing the losses it experienced from Celsius Network’s and Babel Finance’s fall. The business is at a $50 million loss, and shareholders have already been requesting Lim’s resignation.
Zipmex has become taking steps to steady the ship, with withdrawals and transfers being suspended. That is yet another among the cascading ramifications of the crypto market crash, which includes put financial stress on several well-known crypto companies.
Zipmex received a 3-month creditor protection from Singapore’s High Court the other day. This gives the business to be able to raise capital between $50 and $80 million such that it can repay its investors.
The exchange is situated in Australia, and Lim revealed he wouldn’t normally resign towards the Australian Financial Review. He said,
“This course of action includes potentially attracting new majority shareholders who might want a larger say in general management decisions. Should this happen, my co-founder Akalarp [Yimwilai] and I’ve managed to get clear that people will fully cooperate using them and their wishes in the case they might be looking for a management change.”
The call for resignation only appears to have come from one minority shareholder. Others, including the management team, have not asked for resignation.
Zipmex had lent money to Babel Finance, to the tune of $69 million. The crypto winter then devastated Babel, leading to hundreds of millions in losses.
Zipmex Facing Trouble Like Many Others
Zipmex first halted its withdrawals in mid-July 2020, with the market conditions at the time sparking the decision. It partially resumed withdrawals, but Zipmex’s Z Wallet, which allows incentivized deposits remained suspended.
The exchange revealed later that month that it was considering a possible buyout offer and that it was talking with interest parties on the matter. It has additionally filed a 6-month moratorium to delay any legal actions.
Zipmex is facing struggles like other crypto platforms at this time, including Voyager Digital, Celsius Network, and Three Arrows Capital. The crypto winter has dulled the outlook of several companies and investors. Customers of these companies have banded together to do this where possible.