The chief executive officer of troubled crypto exchange Zipmex is being asked to resign by shareholders and potential investors, citing Marcus Lim’s management decisions that led to a severe cash crunch, while the company was granted a three-month moratorium to try to restructure.
See related article: Why Singapore may be the ideal place for companies to rebuild post-crypto winter
Fast facts
- One of Zipmex’s major shareholders has written to Lim asking him to resign, citing a loss of trust between partners and the fallout from the Babel exposure, a person familiar with the matter said, according to a Bloomberg report.
- Zipmex has not responded to Forkast’s inquiries about how many shareholders support the decision.
- Zipmex had previously admitted to having US$48 million and US$5 million in exposure to two other insolvent crypto lenders, Babel Finance and Celsius, respectively.
- Lim said the internal matter is being dealt with by the board and shareholders, and it will be resolved privately after the operational issues are resolved, with the company now focused on executing the recovery plan, according to Bloomberg.
- Lim owns nearly 25 percent of Zipmex, Bloomberg reported citing a source familiar with the matter, and the company will hold an extraordinary general meeting on Wednesday to discuss the situation.
- The Singapore-based company has obtained a moratorium from a Singapore court to protect it against creditors until Dec. 2 for exploring a restructuring plan, while a Nikkei Asia report said the moratorium also blocks Thailand users.
See related article: Zipmex targets raising US$50 mln to cover exposure to embattled crypto lenders