Troubled Zipmex Offers Creditors 30 Cents on the Dollar
Troubled cryptocurrency exchange Zipmex has proposed its creditors nearly 30 cents per dollar of claims as part of its restructuring plan. The firm is seeking new options to stay afloat under the revised plan.
Creditors Demand Independent Audit of Balance Sheet
According to sources, key creditors are not satisfied with the terms of Zipmex’s new proposal and are demanding an independent audit of the exchange’s balance sheet. The approval or denial of the repayment plan will be determined by early December 2023.
Zipmex Denies Inaccurate Information
Zipmex’s Group head, Marcus Lim, denies the accuracy of the information obtained by the sources. While he did not provide specific details, he commented on the matter in an interview with Bloomberg.
Suspension of Trading Activities in Thailand
In an effort to comply with regulatory requirements set by the Securities and Exchange Commission (SEC) of Thailand, Zipmex decided to suspend all digital asset trading activities in Thailand until January 31, 2024.
Non-Compliance Allegations and Bankruptcy Protection
In September 2022, the SEC filed a police report against Zipmex, accusing the exchange and its co-founder Akalarp Yimwilai of operating outside digital asset business regulations without permission. As a result, Zipmex filed for bankruptcy protection in Singapore after revealing exposure to defunct crypto lenders Celsius and Babel Finance.
Hot Take: Zipmex Struggles Amidst Regulatory Pressure
Troubled cryptocurrency exchange Zipmex continues to face challenges as it offers creditors only 30 cents on the dollar. With key creditors demanding an independent audit of its balance sheet, the approval of Zipmex’s repayment plan remains uncertain. The exchange’s decision to suspend trading activities in Thailand further highlights the pressure it faces to comply with regulatory requirements. Zipmex’s struggles with non-compliance allegations and exposure to defunct lenders have pushed it into bankruptcy protection. As the situation unfolds, it remains to be seen whether Zipmex can overcome these obstacles and regain stability in the crypto market.
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