Zipmex Seeks Further Extension on Moratorium Window
Troubled crypto exchange Zipmex is looking to extend the current moratorium on creditor protection by another two months to enable the company to find a solution regarding reopening its Z wallet. Zipmex filed an application with the Singapore court for an additional two months on its moratorium, as stated in an update on April 18. The request for an extension comes after its investor delayed tranche payments.
Investor Dispute Raises Concerns
However, Zipmex’s update revealed that the investor, whose name was not mentioned, claimed that the Scheme of Arrangement had lapsed and was no longer bound by the terms of the agreement. Zipmex mentioned in a letter to the court that the investor proposed paying 10 to 20% to the crypto exchange’s creditors, against the original arrangement to make a 100% payment. Meanwhile, the latest update also stated that the investor requests a return on its working capital loan.
Impact on Z Wallet Reopening
While the crypto exchange has acknowledged that the investor’s position could affect the reopening of its Z wallet, the extension will give the company more time to reopen withdrawals on the Z wallet. Zipmex also seeks new investors to “maximize returns for customers.”
Previous Extensions and Upcoming Decision
This is not the first time Zipmex has extended its creditor protection window after halting withdrawals in July 2022 following its exposure to distressed cryptocurrency lenders Celsius and Babel Finance. With the latest extension scheduled to expire on April 23, Zipmex may have until June if the court grants its latest application.
Conclusion: Critical Period for Zipmex’s Future
The outcome of Zipmex’s application for a further extension on its moratorium window will be crucial for the company’s future. The additional time could allow the troubled crypto exchange to resolve the investor dispute, reopen its Z wallet, and restore customer confidence. As Zipmex seeks new investors to maximize returns for its customers, the court’s decision will play a significant role in determining the path forward for the exchange and its users.
