Asian crypto exchange Zipmex faces liquidation after an investor missed a monthly payment.
Venture capital firm V Ventures failed to pay $1.25 million due on March 23 as part of a $100 million buyout of the embattled exchange.
gipmex may suspend payroll
According to the letter seen by Bloomberg, Zipmex Technology Co. is facing liquidation and cannot pay its employees without funds.
Zipmex is reportedly going to consult with advisors on its next steps.
Zipmex filed for bankruptcy in Singapore on July 22 last year after being forced to halt withdrawals amid a plunge in cryptocurrency prices. The solicitor filed a moratorium, equivalent to a US Chapter 11 filing, to stay legal proceedings against the exchange for several months.
The entities which have sought moratorium relief in the applications are:
- Gipmex Asia Pte Ltd
- Zipmax Pte Ltd
- Zipmex Company Limited (incorporated in Thailand)
- PT Gipmex Exchange Indonesia (incorporated in Indonesia)
- Zipmex Australia Pty Ltd (incorporated in Australia)
Zipmex owes $53 million to Babel Finance and defunct crypto broker Voyager Digital, which was recently allowed to sell its assets to Binance.US.
Last month, Australian restructuring firm CordMentha, the exchange’s scheme manager, asked creditors to vote on a potential takeover. He was also asked to provide the asset balance in his ZWallet that he believed Zipmex owed him, promising to resolve discrepancies through adjudication.
Restructuring did not allow creditor committees
In December, the agency warned potential Zipmex creditors to “carefully consider the agreements offered” before signing on the dotted line. It argued that the agreements were discriminatory because the exchange apparently only sent important restructuring information to select customers.
The Exchange did not set up creditor committees to represent creditors in various markets. It argued that the committees, which may require personal legal and advisory staff, would put a burden on the recovery of creditors’ money.
In the moratorium update on Wednesday, Zipmax confirmed the court filing for solicitation approval for the payout scheme. It also applied for moratorium extension. The courts will hear the applications on March 30.
Any creditor who wishes to participate in the hearing shall do so through the appointment of legal counsel with audience rights in Singapore. Anyone affected by the filing may participate in the hearing via Zoom.
The Thai SEC said in January that it was investigating Zipmex for illegally managing a digital asset fund.
Zipmex rival Would, which applied for protection from creditors in July 2022, will see its application for an extension of the order expire today. Would owes approximately $402 million to creditors.
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