Zipmex Proposes Repayment Plan

Zipmex, a troubled cryptocurrency exchange, has proposed to repay its creditors 3.35 cents per dollar as part of its restructuring efforts. This figure could potentially rise to as much as 29.35 cents per dollar depending on recoveries made from the exchange’s amended restructuring plan, as it seeks to settle a debt of more than $97 million.

Creditors’ Response and CEO Statement

Zipmex’s major creditors are against the proposed repayment plan and have requested an independent review of its assets and liabilities. Zipmex’s co-founder and CEO, Marcus Lim, stated that the number reported by journalists was inaccurate but refused to disclose the details of the proposed scheme.

Recent Developments and Suspension of Trading

Zipmex temporarily suspended all crypto trading and deposits in Thailand to comply with regulatory requirements from the Securities and Exchange Commission (SEC). Customers have been asked to contact customer support for withdrawals if their assets remain on the platform after January 31, 2024.

Zipmex faced financial difficulties after being caught up in the contagion triggered by the Terra ecosystem’s implosion in July 2022. The exchange froze withdrawals and has been repeatedly asking the court to extend the period for its creditor protection to develop a suitable restructuring plan.

Deal with V Ventures and Payment Delay

In December 2022, Thailand-based venture capital firm V Ventures signed a deal with Zipmex to acquire 90% of the company for $100 million. Unfortunately, V Ventures did not complete the fourth tranche of the payment, which was due on March 23, leading to a new offer to pay Zipmex’s creditors about 10% to 20% of their claims.

See also  BlockFi successfully averts bankruptcy, begins reimbursing creditors

### News source:

By Team