The payout amount could be increased to 29 cents on the dollar if the company’s financial situation stabilizes. The company’s CEO, Marcus Lim, did not confirm the accuracy of the plan, but noted discrepancies in the numbers. However, Zipmex’s major creditors have expressed dissatisfaction with the proposed debt repayment plan and called for an independent review of the company’s assets and liabilities.
Zipmex’s financial problems came to light as early as July 2022, when the company claimed protection from creditors under Singapore’s bankruptcy law. Exchange freezes withdrawals after Terra ecosystem collapse. The exchange has repeatedly asked the court to extend the period of protection from creditors so that it has time to develop a suitable restructuring plan.
In December 2022, Thailand-based venture capital firm V Ventures entered into an agreement with Zipmex to acquire a 90% stake in the firm for $100 million in cash and crypto assets. The agreement stipulated that cryptocurrencies would be used to gradually unlock users’ frozen assets by April 2023. The delay in payment was followed by a new offer to pay Zipmex creditors approximately 10-20% of their claims. V Ventures management explained that the new offer came as a result of Zipmex’s failure to fulfill the terms of the original agreement.
A few days ago, Zipmex announced that it would suspend accepting deposits and trading in digital assets to ensure compliance with the Securities and Exchange Commission (SEC) of Thailand’s regulatory requirements. The exchange warned customers that until January 31, 2024, their withdrawal requests will be processed manually.