The Singapore High Court has granted crypto exchange Zipmex Thailand, an arm of Singapore-headquartered Zipmex Pte, approval for its restructuring plan. This marks a significant development in the case as it paves the way for its customers to retrieve their deposits. The Court has approved the creation of an “administrative convenience class” for creditors with assets in their wallets not exceeding $5,000. This will ensure that smaller creditors can also benefit from the restructuring plan.
Additionally, Zipmex’s request for a three-week extension of creditor protection until April 23 has been granted, providing some relief to its customers.
Zipmex had frozen all withdrawals last year after experiencing a liquidity crisis following the collapse of Terra and its algorithmic stablecoin UST. The restructuring plan marks a significant step towards recovery for the platform and its customers.
Furthermore, Zipmex is in the process of completing a $100 million venture capital buyout by fellow Thailand-based firm V Ventures. However, the sale faced a roadblock recently when V Ventures missed a $1.25 million payment, which could have resulted in Zipmex having to liquidate its technology unit unless the payment was rectified.
Despite this setback, the approval of Zipmex’s restructuring plan is a positive development for the platform and its customers. It provides a pathway toward resolving its liquidity crisis and regaining the trust of its customers.
Zipmex’s approval of its restructuring plan by the Singapore High Court is a significant step towards its recovery. It will provide much-needed relief to its customers and ensure that smaller creditors are not left out of the restructuring process.
The platform’s ongoing venture capital buyout by V Ventures may have faced a temporary roadblock, but the approval of its restructuring plan marks a significant milestone toward its eventual recovery.
