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THURSDAY, November 30, 2023

Singapore court approves 3-month debt moratorium for Zipmex

Singapore court approves 3-month debt moratorium for Zipmex
TUESDAY, August 16, 2022

Distressed cryptocurrency firm Zipmex has been granted a three-month debt moratorium for all its entities by a Singapore court.

Zipmex Thailand said the court approved the request during a hearing on Monday and the debt moratorium provided protection to Zipmex Asia, Zipmex, Zipmex Thailand and two other subsidiaries of the Singapore-based parent company.

The five Zipmex firms will be protected from legal action by creditors until December 2.

The court also ordered Zipmex firms to hold Town Hall meetings with clients within the next month to inform them of the current status of Zipmex firms, the possibility of buyouts by investors, and when they will be given access to their frozen Z Wallet accounts.

The dates for the meetings will be announced via emails and websites of the Zipmex firms.

Zipmex hit trouble after it invested US$53 million worth of crypto coins deposited by Z Wallet clients in two crypto lenders, Babel Finance and Celsius, which then defaulted.

Under the moratorium, Zipmex firms must report their assets within one month and any transfer of assets within 14 days. They must also issue reports on their profits and liquidity within a month as well as monthly reports on management budgets.

The Zipmex firms are also required to issue an affidavit on the progress of operations to tackle the financial crisis within six weeks.

The court also ordered the Zipmex firms to issue monthly progress reports to clients.

Zipmex Thailand said the court’s approval was a positive sign and reflected Singapore’s and international investors’ confidence that Zipmex could solve the crisis.

It said Zipmex firms were trying to mitigate the impact from Z Wallet woes and are in the process of developing an eco-system for stability of Zipmex’s ZMT coin.

It added that Zipmex firms are in buyout talks with several major investors aimed at injecting liquidity to repay investors.