Singapore’s lower division of the Supreme Court approved Zipmex’s pre-packaged plan to restructure some of its operations and thus enable customers to receive portions of their deposits.
The Thai-based crypto exchange suspended clients’ withdrawals in July last year, citing volatile market conditions. It could not cope with the issues and filed for bankruptcy protection shortly after.
Zipmex announced in a recent blog post that the Singapore High Court allowed the creation of an “Administrative Convenience Class” for creditors who have funds worth less than $5,000.
The magistrates also approved the exchange’s request for a three-week extension of creditor protection:
“The Singapore Court has granted the request by the Zipmex Group for the moratoria in HC/OAs 381 to 385 of 2022 to be extended until April 23, 2023, or further order of Court.”
The green light seems like a breath of fresh air for the troubled platform, whose $100 million rescue plan was close to failing due to a missed $1.25 million payment.
Zipmex encountered severe difficulties during the crypto winter, which intensified last summer. It paused user withdrawals and revealed a $53 million exposure to Babel Finance and Celsius Network.
The firm was willing to meet with the Securities Exchange Commission in Thailand to discuss an eventual recovery strategy and possible multi-million fundraising.
Despite the efforts, it filed for bankruptcy protection in Singapore, becoming another victim of the bear market.
The exchange allowed its Z Wallet customers to partially withdraw a chunk of their bitcoin and ether holdings between August 11 and August 16 last year.
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