Business In News
- The Singapore High Court has approved a restructuring plan for Zipmex.
- The approval will help customers with stranded funds on the exchange get their money back.
- The Thai crypto exchange suspended withdrawals last year following liquidity issues induced by Terra’s collapse.
Troubled crypto exchange Zipmex seems to have turned a page in its bankruptcy proceedings after getting a key restructuring plan approved earlier today. The Singapore High Court approved a series of proposals and granted multiple requests that were part of the restructuring plan, bringing stranded customers one step closer to accessing their funds.
Court okays creditor three-week protection extension for Zipmex
According to an update by Zipmex regarding moratorium applications in Singapore, the High Court approved pre-packaged schemes of arrangement meant for the crypto exchange’s Asian and Australian entities. Additionally, the Singapore High Court approved the Thai crypto exchange’s request to create an “Administrative Convenience Class” for creditors who have less than $5,000 worth of assets in their Z wallets.
The Singapore High Court also granted the bankrupt crypto exchange’s request to extend the creditor protection period till 23 April 2023, i.e. three weeks, or until further order from the court. Zipmex has also been directed to provide an update regarding their restructuring efforts to the court as well as the exchange’s creditors by 13 April 2023. The exchange filed for bankruptcy protection in Singapore in July last year following liquidity issues induced by the collapse of Terra.
Approval of the restructuring plan comes just days after a $100 million bid to acquire the crypto exchange seemed to waver following a missed payment from V Ventures, the firm behind Zipmex’s venture capital buyout. Bloomberg reported that the firm reportedly missed a $1.25 million payment leading to speculation about the potential liquidation of one of Zipmex’s subsidiaries. The Securities and Exchange Commission of Thailand has reportedly asked the bankrupt crypto exchange to provide clarification on the matter.