Zipmex proposes to pay creditors 3 cents per dollar

Zipmex proposes to pay creditors 3 cents per dollar

Embattled Thai crypto exchange Zipmex is offering its creditor 3.35 cents per dollar of initial claims with further payouts in a recovery scenario. The proposal came as a part of the restructuring offer from a company that owes its customers $97 million. 

According to a Bloomberg report on Nov. 29, Zipmex could raise the sum from 3.35 cents per dollar to 29.35 cents per dollar “contingent on the recovery.” However, major creditors are reportedly against the proposed scheme and demand an independent review of the company’s liabilities.

Marcus Lim, the CEO of Zipmex, refused to confirm the cited details of a restructuring scheme but mentioned the “inaccuracies” in numbers cited by journalists, the report said.

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Zipmex got into trouble in the summer of 2022 when the crypto exchange, operating in Southeast Asia, filed for bankruptcy protection in Singapore. The company demanded time to work out how to address its exposure of $53 million to crypto lenders Babel Finance and Celsius.

Zipmex has repeatedly asked the Singaporean court to extend the moratorium on its debt. According to Bloomberg, the creditors’ vote on the current restructuring plan will happen in early December.

In November, the exchange announced that all digital asset trading in Thailand would be suspended by Jan. 31, 2024. The company has been under the local Securities and Exchange Commission’s investigation since early 2023.

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