Zipmex says it filed for the court extension as it seeks to find a solution that suits its customers and an investor.
The moratorium was put in place following Zipmex’s bankruptcy filing in July last year.
The cryptocurrency exchange says it is negotiating with new investors even as it engages the current one.
Zipmex, a cryptocurrency exchange that filed for bankruptcy amid last year’s crypto market contagion, has provided an update to its investment deal.
Per an announcement published today, Zipmex says it is seeking an extension to the moratorium currently in place amid its bankruptcy proceedings.
The exchange revealed that it had filed for a two-month extension from the Singapore bankruptcy court after an investor delayed payments agreed upon as part of the exchange’s restructuring.
Zipmex Asia seeks 2-month moratorium extension
After missing the March tranche of payments and impacting Zipmex’s Z Wallet operations, the said investor asked for the investment agreement – the Scheme of Arrangement – to be modified. The investor reportedly also sought the crypto exchange to modify the investment amount.
“As of today, the investor claims that the SSA has lapsed and that it is no longer bound to abide by the terms of the SSA. The investor has also demanded a return on its working capital loan,” Zipmex wrote.
According to the update, Zipmex is now in talks with the investor as it looks to find a solution that would suit all parties. Knowing that the delay impacts customer withdrawals and the planned reopening of Z Wallet, the company has also begun negotiating with new investors.
This is why the Zipmex team is looking to have the moratorium extended for two months to allow it to find the best possible solution for its customers.
As CoinJournal reported, the Southeast Asia exchange halted withdrawals in July before filing for bankruptcy protection. At the time, Zipmex revealed $5 million and $48 million exposure to collapsed Celsius Network and Babel Finance respectively.