Zipmex crypto exchange, has announced that it will reopen customer withdrawals following a successful takeover deal with a venture capital firm last month.
This move comes after the credit crunch the company faced last year due to the market collapse that followed the implosion of Terra and its algorithmic stablecoin UST.
Eligible creditors are required to fill out a form stating the amount owed to them by February 21. The company’s scheme manager, investment firm KordaMentha, is aiming to finalize all withdrawals by March 21.
The rescue deal, which was in “advanced talks” in November, has been signed, according to a person familiar with the matter.
The venture firm has signed the deal terms and has been providing money in tranches to Zipmex. With this development, the cryptocurrency exchange is set to regain stability and resume its operations, which have been affected by the credit crunch.
However, Zipmex is still facing regulatory scrutiny. It was reported last month that Thailand’s securities regulator is investigating whether the company was operating without permission.
Zipmex, like other cryptocurrency exchanges, has to navigate a complex regulatory landscape in the Southeast Asian region, which has different laws and regulations in different countries.
