Zipmex, a cryptocurrency exchange based in Thailand, has been granted approval by the Singapore High Court to set up an “Administrative Convenience Class,” allowing users to receive portions of their deposits back. This is a positive development for the platform, which had suspended client withdrawals in July 2022 due to volatile market conditions and filed for bankruptcy protection shortly after.
Zipmex’s restructuring plan was approved by Singapore’s lower division of the Supreme Court, allowing customers with funds worth less than $5,000 to receive portions of their deposits. The court also granted the exchange’s request for a three-week extension of creditor protection until April 23, 2023, or further order of the Court announced in a recent blog.
Zipmex faced significant challenges during the crypto winter and revealed a $53 million exposure to Babel Finance and Celsius Network, which led to the suspension of user withdrawals. Despite its efforts to meet with the Securities Exchange Commission in Thailand to discuss a recovery strategy and possible fundraising, the exchange ultimately filed for bankruptcy protection in Singapore.
While Zipmex allowed its Z Wallet customers to partially withdraw a chunk of their bitcoin and ether holdings between August 11 and August 16, 2022, this approval from the Singapore High Court to restructure some of its operations and enable users to receive portions of their deposits back is an optimistic development for the platform’s future.
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