Crypto Exchange Zipmex Granted Three Months Creditor Protection From Singapore Court
Crypto Exchange Zipmex has just received a moratorium extension from the Singapore High Court. Currently, Zipmex has more than three months of creditor protection. This will give the crypto exchange a little more time so they can work out the next steps in their funding plan.
Zipmex had filed for bankruptcy protection and had also suspended its withdrawals in early July. Now with the extension, the exchange will be safe from creditor lawsuits until December 2.
The moratorium extension has been granted to all five units of Zipmex. Zipmex’s lawyers had applied for six months of protection for all five units available in Thailand, Singapore, Indonesia and Australia.
Aside from the protection from creditors, the Singapore High Court has asked Zipmex to convene a town hall-style meeting with its creditors and also its customer base in a month. The topics to be discussed were also specified, this included proposed investments and access to Z Wallets.
Crypto exchange to call a town hall style meeting
Crypto exchange Zipmex had previously stopped withdrawals and transfers in July. Recently, the exchange resumed operations releasing Cardano (ADA), Solana (SOL) and XRP.
These three altcoins were released into the wallets of traders two weeks after Zipmex stopped its withdrawals and transfers.
In the latest development, Zipmex also mentioned that they plan to release Ethereum and Bitcoin tokens as well, which will allow 60% of users to recover their digital assets.
Now as per the orders of the Singapore High Court, Zipmex has to update the court regarding the meeting.
It must specifically inform about the progress of the town hall meeting together with the other discussions that will take place.
This will include discussions with the company’s creditors and also a copy of the meeting minutes from the town hall meeting. It must be sent to the court within six weeks from mid-August.
Restructuring of Zipmex in order now as directed by the court
Zipmex’s other units include Zipmex, Zipmex Thailand, Zipmex Asia, Zipmex Indonesia and Zipmex Australia. The court has now asked the crypto exchange to focus on a restructuring of all the above entities. Currently, the restructuring of the entire Zipmex group is underway and falls under Singapore’s insolvency laws.
Zipmex happens to be one exchange among other cryptocurrency exchanges that have halted their trading platforms since last month, due to the slowdown in the crypto market and high volatility.
Zipmex is trying to raise funds and has signed a memorandum of understanding with two of its investors. The stock exchange has mentioned,
Knowing that this is time critical, Zipmex and its investors are expediting due diligence as much as possible to bring a solution to customers.
