Zipmex says it may resume 100% of Z wallet withdrawals subject to conditions
Creditors have until February 21 to vote on a new scheme proposed by the company that would let customers get all of their frozen deposits back.
Troubled Thai cryptocurrency exchange Zipmex says all of its customers will get their deposits back if eligible creditors approve a scheme of arrangement.
Zipmex announced on Feb. 15 that creditors have until Feb. 21 to vote on the scheme, which is being managed by KordaMentha. They “will receive 100% of their digital assets in the Z Wallet” if the scheme is approved and the cryptocurrency closes its pending investment deal.
Last July, Zipmex filed for debt relief in Singapore after its counter-party, crypto lending firm Babel Finance, halted withdrawals, citing “unusual liquidity pressures.” The exchange was also impacted by the bankruptcy of crypto lending firm Celsius. Together, the two counterparties owe Zipmex $48 million and $5 million, respectively.
Zipmex subsequently paused withdrawals on its platform after the revelations last July. However, withdrawals were resumed within two days for its fiat currency and trading funds service Trade Wallet. That said, the firm’s Z Wallet, used for Zipmex services and receipt of earnings and bonuses, remains in the debt moratorium state with the gradual resumption of withdrawals.
Cointelegraph reported on Dec. 2 that Thai Venture Capital V Ventures will acquire Zipmex for $100 million in cash and crypto. According to court documents, Zipmex plans to use cryptocurrency assets received from the transaction to unlock frozen customer accounts on the exchange by April. Subsequent to thisdevelopment, on Jan. 11, the Securities and Exchange Commission of Thailand began a new probe of Zipmex, alleging a breach of local rules. The regulatory agency has also warned investors to carefully review documents issued by the company before making a deal.
