Zipmex’s Restructuring Plan Greenlighted by the Singapore High Court
Singapore’s magistrates allowed Zipmex to set up an “Administrative Convenience Class” that could enable users to get some of their deposits back. 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.
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 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. Despite the efforts, it filed for bankruptcy protection in Singapore, becoming another victim of the bear market.