Thai cryptocurrency exchange Zipmex, currently facing financial turmoil, has unveiled a restructuring proposal that offers creditors an initial payout of 3.35 cents for every dollar owed, with the potential for increased payments in a recovery scenario.
This move comes as the exchange grapples with a substantial debt of $97 million owed to its customers.
According to a report from Bloomberg on November 29, Zipmex has outlined a plan that could potentially elevate the payout to 29.35 cents per dollar, contingent upon a successful recovery.
However, significant creditors have expressed their opposition to this proposed scheme, calling for an independent assessment of the company’s financial obligations.
While Zipmex CEO Marcus Lim did not confirm the specific details of the restructuring plan, he did highlight the existence of “inaccuracies” in the numbers reported by the media.
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Zipmex initially encountered financial difficulties in the summer of 2022 when the cryptocurrency exchange, operating primarily in Southeast Asia, sought bankruptcy protection in Singapore.
At that time, the company needed a period to devise a strategy to address its outstanding debt of $53 million to crypto lenders Babel Finance and Celsius.
Throughout this period, Zipmex repeatedly requested extensions of the debt moratorium from the Singaporean court.
According to Bloomberg, creditors will have the opportunity to vote on the current restructuring plan in early December.
In a separate development in November, Zipmex announced its intention to suspend all digital asset trading activities in Thailand by January 31, 2024.
This decision followed an ongoing investigation by Thailand’s Securities and Exchange Commission, which commenced in early 2023.
The future of Zipmex remains uncertain as it navigates its complex financial situation and attempts to find a viable path forward.
The fate of the proposed restructuring plan and the resolution of its debts will likely have a significant impact on the exchange’s future operations and its ability to recover from its current challenges.
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