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Singapore High Court Green Lights Zipmex's Restructuring Plan

Zipmex customers will soon be getting their money back

Image: Eliobed Suarez / Unsplash

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Thai crypto exchange Zipmex has been given approval by the Singapore High Court over its restructuring plan.

According to a Zipmex press release, the "pre-packaged schemes of arrangement" have been approved, including the creation of an "Administrative Convenience Class" for creditors with no more than US$5,000 in their wallets.

Zipmex's request of a creditor protection extension of three weeks until 23 April was also approved.

In July 2022, Zipmex Thailand temporarily suspended digital asset withdrawals from the company’s Z Wallet after Zipmex Singapore partners Babel Finance and Celsius Network collapsed.

Nonetheless, Zipmex has since re-enabled full Z Wallet access and re-opened its crypto exchange in Indonesia.

Despite the challenges, Zipmex shared its 2023 roadmap and crypto industry outlook during a company event in February.

Erdina Oudang, Zipmex's head of public policy in Indonesia, said that Zipmex Indonesia "has been successful in recovering from the tough year and has even managed to reactivate customers' access to their assets and resume operations, while still making improvements on its business and products."

But last month, Zipmex faced further difficulties as it has failed to receive the most recent payment due under a $100 million venture capital buyout.

The payment of $1.25 million was due on March 23 to fund working capital. Zipmex said in the letter it would have to start liquidation proceedings for a unit, Zipmex Technology Co., and suspend that division’s payroll unless it receives the money.

The exchange had been receiving three tranches of funding. Its business arms in Thailand, Singapore, and Indonesia were relying on the funds to pay salaries to staff, according to the letter.

Read more: Crypto Exchange Zipmex's Rescue Plan in Jeopardy

Zipmex Asia is currently being acquired for US$100 million by Thoresen Thai Agencies subsidiary V Ventures. If the payment is not made, Zipmex's rescue plan may be in jeopardy. Zipmex is however, reportedly working with its advisers on next steps.