Due to its liquidity problems, the Thailand-based cryptocurrency exchange platform Zipmex is seeking another extension that would allow for a lengthier moratorium on its debt in Singapore.
Maximizing Returns for Customers
In a statement made on April 18, Zipmex stated that the company is now in discussions with partners to “maximize returns for customers” as a result of a payment delay.
The company reported that its Asia division has asked Singapore’s courts to extend the current suspension period by two months.
The exchange claims that it would make advantage of the additional period of time to organize and activate Z Wallet withdrawals.
Zipmex’s Financial troubles
Notably, Zipmex initially applied for a moratorium enabling the business to defer payments in July.
At that moment, the company had around $5 million trading in Celsius. Previously, the platform had stopped allowing withdrawals, and CEO Marcus Lim did not dismiss rumors that the company was in financial trouble.
Date Moved to June
The Singaporean courts approved Zipmex’s request for a moratorium, allowing the company to develop a restructuring strategy until December 2022.
However, the organization has persisted in asking for the moratorium to be extended; the most recent request likely moved the dates to June.
Zipmex was Affected by the Crypto Winter
As reported by TheCoinRise, Zipmex received authorization to offer cryptocurrency exchange services in the nation through the Securities and Exchange Commission and the Ministry of Finance in January 2020.
However, the business was among the organizations most severely impacted by the current bad market. Due to market volatility and financial concerns with its partners, Zipmex stopped accepting customer withdrawals at the end of July.
According to Zipmex’s official statement, the business seeks defense from the activities and previously demanded of its creditors for a maximum duration of six months.
The South Asian cryptocurrency trading platform Zipmex transferred 90% of its shares to an existing shareholder in the firm for around $100 million in December of last year after filing for bankruptcy.