Zipmex’s Restructuring Plan Greenlighted by the Singapore High Court

Singapore’s lower division of the Supreme Court approved Zipmex’s pre-packaged plan to restructure some of its operations and thus enable customers to receive portions of their deposits.

The Thai-based crypto exchange suspended clients’ withdrawals in July last year, citing volatile market conditions. It could not cope with the issues and filed for bankruptcy protection shortly after.

• Zipmex announced in a recent blog post that the Singapore High Court allowed the creation of an “Administrative Convenience Class” for creditors who have funds worth less than $5,000. 
• The magistrates also approved the exchange’s request for a three-week extension of creditor protection:

“The Singapore Court has granted the request by the Zipmex Group for the moratoria in HC/OAs 381 to 385 of 2022 to be extended until April 23, 2023, or further order of Court.”

• The green light seems like a breath of fresh air for the troubled platform, whose $100 million rescue plan was close to failing due to a missed $1.25 million payment.
• Zipmex encountered severe difficulties during the crypto winter, which intensified last summer. It paused user withdrawals and revealed a $53 million exposure to Babel Finance and Celsius Network.
• The firm was willing to meet with the Securities Exchange Commission in Thailand to discuss an eventual recovery strategy and possible multi-million fundraising.
• Despite the efforts, it filed for bankruptcy protection in Singapore, becoming another victim of the bear market. 
• The exchange allowed its Z Wallet customers to partially withdraw a chunk of their bitcoin and ether holdings between August 11 and August 16 last year. 

The article was first published on: Mar 31, 2023