Crypto Exchange Zipmex has just received a moratorium extension from Singapore High Court. At the moment, Zipmex has more than three months of creditor protection. This will give the crypto exchange some more time so that they could devise the next steps of their funding plan.
Zipmex had filed for bankruptcy protection and had also suspended its withdrawals at the beginning of July. Now with the extension, the exchange will be safe against creditor lawsuits until December 2.
The moratorium extension has been granted to Zipmex’s all five entities. Zipmex’s solicitors had applied for six months of protection for all five entities which are available in Thailand, Singapore, Indonesia and Australia.
Apart from the protection from the creditors, Singapore High Court has directed Zipmex to summon a town-hall style meeting with its creditors and also the customer base in a month. The topics that are to be discussed were also specified, this included proposed investments and access to Z Wallets.
Crypto Exchange To Call For A Town Hall Style Meeting
Crypto exchange Zipmex had previously halted the withdrawals and transfers in July. Recently, the exchange resumed operations with releasing Cardano (ADA), Solana (SOL) and XRP.
These three altcoins were allowed to be released into the wallets of traders two weeks after Zipmex paused its withdrawals and transfers.
In recent developments, Zipmex also mentioned that it was planning to release Ethereum and Bitcoin tokens as well which would allow 60% of its users to get back their digital assets.
Now as per the orders of the Singapore High Court, Zipmex has to update the court regarding the meeting.
It specifically has to inform about the progress of the town hall meeting along with the other discussions that are to happen.
This will include discussions with the company’s creditors and also a copy of the meeting minutes of the town hall gathering. It has to be sent to the court within six weeks starting August mid-week.
Restructuring Of Zipmex In Order Now As Directed By The Court
Zipmex’s other entities include Zipmex, Zipmex Thailand, Zipmex Asia, Zipmex Indonesia and Zipmex Australia. The court has now asked the crypto exchange to focus on a restructuring of all the above-mentioned entities. At the moment, the restructuring of the entire Zipmex group is underway and falls under Singapore’s insolvency laws.
Zipmex happens to be one exchange among other cryptocurrency exchanges that have paused the trading platforms since the previous month, owing to the crypto market downturn and sharp volatility.
Zipmex is trying to raise funds and has signed a memorandum of understanding with two of its investors. The exchange has mentioned,
As we know this is time-critical, Zipmex and its investors are expediting due diligence as much as possible to bring forward a resolution for customers.
Featured image from Digitally Cool, chart from TradingView.com