Zipmex requests 2-month extension from Singapore court for restructuring plan

Cryptocurrency exchange Zipmex has requested another extension which would allow for a longer moratorium on its debt in Singapore amid the firm’s liquidity issues.

In an April 18 announcement, Zipmex said it was currently in negotiations with investors in an attempt to “maximize returns for customers” following a delay in payments. The firm said its Asia arm had filed a request in Singapore’s courts to extend its existing moratorium period by two months. According to the exchange, it will use the extra time to plan and reopen Z Wallet withdrawals.

Zipmex originally filed for a moratorium allowing the firm to postpone payments in July 2022, amid a tumultuous year for the crypto market — the company had roughly $5 million in exposure to Celsius. The platform had suspended withdrawals earlier that month, while CEO Marcus Lim did not deny reports that the firm was facing insolvency.

Singapore’s courts granted Zipmex’s moratorium request, giving the firm until December 2022 to come up with a restructuring plan. However, the platform has continued to request extensions on the moratorium, with the most recent one likely pushing its deadlines to June.

It’s unclear to which investor Zipmex was referring in its latest announcement. In March, venture capital firm V Ventures reportedly did not provide a payment of more than $1 million necessary for Zipmex to avoid liquidating certain operations and stop distributing payroll to employees.

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Update (April 18 at 9:18 PM UTC): Zipmex said in response to an inquiry from Cointelegraph that a Singaporean court granted the extension until April 23.