Zipmex Co-Founder Says He Will Not Resign

  • Zipmex co-founder Marcus Lim has said that he will not resign from his position.
  • One minority shareholder had called for his resignation.
  • Zipmex is currently carrying out several strategies to better its financial position and has filed for bankruptcy protection.

Marcus Lim, the co-founder of exchange Zipmex, has said that he will not resign. The exchange is suffering from the losses it experienced from Celsius Network’s and Babel Finance’s fall. The company is in a $50 million loss, and shareholders have been asking for Lim’s resignation.

Zipmex has been taking steps to steady the ship, with withdrawals and transfers being suspended. This is yet another one of the cascading effects of the crypto market crash, which has put financial stress on a number of well-known crypto companies.

Zipmex received a 3-month creditor protection from Singapore’s High Court last week. This gives the company a chance to raise capital between $50 and $80 million so that it can repay its investors.

The exchange is based in Australia, and Lim revealed that he would not resign to The Australian Financial Review. He said,

“This plan includes potentially bringing in new majority shareholders who may want a greater say in management decisions. Should this happen, my co-founder Akalarp [Yimwilai] and I have made it clear that we will fully cooperate with them and their wishes in the event they may 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 also filed a 6-month moratorium to delay any legal actions.

Zipmex is facing struggles like several other crypto platforms at the moment, including Voyager Digital, Celsius Network, and Three Arrows Capital. The crypto winter has dulled the outlook of many companies and investors. Customers of those companies have banded together to take action where possible.