Zipmex’s Restructuring Plan Approved by High Court of Singapore

It is reported that the arrangement plan or restructuring plan of the Thai cryptocurrency exchange Zipmex has been approved by the High Court of Singapore, paving the way for customers to withdraw their deposits. According to an update on the Zipmex website on Thursday, the court approved the establishment of an “administrative convenience category” for creditors with wallet assets of no more than $5000. Zipmex’s request to extend the creditor protection period by three weeks to April 23 was also approved.

Singapore Court Approves the Restructuring Plan of Cryptocurrency Exchange Zipmex

In recent years, cryptocurrencies have gained significant popularity worldwide, and their use has increased exponentially. However, with the growing use of these digital assets, there have also been numerous cases of fraud and malfunction amongst cryptocurrency exchanges, leading to bankruptcy and losses for many customers. One such exchange is the Thai cryptocurrency exchange Zipmex, which was recently granted approval by the High Court of Singapore for its restructuring plan, paving the way for customers to withdraw their deposits.

Overview of Zipmex

Zipmex is a cryptocurrency exchange registered in Thailand that offers trading services for various digital assets. It is a popular exchange with a good reputation amongst cryptocurrency enthusiasts and investors. However, in recent months, the exchange has faced financial difficulties that led to creditor protection proceedings.

The Approval of Zipmex’s Restructuring Plan

Recently, the High Court of Singapore approved the restructuring plan of Zipmex, bringing some relief to the exchange’s customers who were unable to withdraw their funds. The restructuring plan put forth by Zipmex provides relief to creditors by allowing them to withdraw their funds within a certain timeframe.
Furthermore, the court approved the establishment of an “administrative convenience category” for creditors with wallet assets of no more than $5000. This provision means that creditors with a lesser amount of funds will have an easier time accessing their assets.

Extension of Creditor Protection Period

Zipmex also requested an extension of the creditor protection period by three weeks, which the High Court of Singapore duly approved. Creditors who have not yet filed their claims will have additional time to do so and can thus recover their assets.

Conclusion

The approval of Zipmex’s restructuring plan and creditor protection extension by the High Court of Singapore is a significant development for the exchange’s customers. It is expected that the plan will provide customers with greater access to their funds and quicker relief. However, it remains to be seen how effectively the restructuring plan will be implemented.

FAQ

Q1. Why was Zipmex’s restructuring plan necessary?
Ans: Zipmex faced financial difficulties that led to creditor protection proceedings, requiring the exchange to provide its customers with a structured plan to withdraw their funds.
Q2. What is the administrative convenience category?
Ans: The administrative convenience category is a provision made by the High Court of Singapore for creditors holding wallet assets of no more than $5000, making it easier for them to access their funds.
Q3. Can creditors still file their claims?
Ans: Yes, the extension of the creditor protection period by three weeks allows creditors who have not yet filed their claims to do so, and thus recover their assets.