The lower division of Singapore’s Supreme Court has approved Zipmex’s pre-packaged plan to restructure its operations, allowing customers to obtain portions of their deposits. The Thai-based crypto exchange suspended clients’ withdrawals in July 2021 due to volatile market conditions and filed for bankruptcy protection shortly thereafter. According to a recent blog post by Zipmex, the Singapore High Court has allowed the creation of an “Administrative Convenience Class” for creditors with funds worth less than $5,000, and has also granted the request for a three-week extension of creditor protection until April 23, 2023, or further order of court. This development appears to be a relief for the troubled platform, whose $100 million rescue plan was close to failing due to a missed $1.25 million payment. During the crypto winter that intensified last summer, Zipmex paused user withdrawals and disclosed a $53 million exposure to Babel Finance and Celsius Network. The firm has expressed its willingness to meet with the Securities Exchange Commission in Thailand to discuss a potential recovery strategy and multi-million fundraising. Despite its efforts, it filed for bankruptcy protection in Singapore, making it another bear market casualty. The exchange allowed its Z Wallet customers to partially withdraw a portion of their bitcoin and ether holdings between August 11 and August 16, 2021.
