Zipmex aims to expand its restructuring efforts until June.
Zipmex, a cryptocurrency and digital assets platform operating in Singapore, Thailand, Indonesia and Australia, has asked the Singaporean court to extend its moratorium by additional two months.
The company announced on April 18th that they are currently in discussions with potential investors to "maximize returns" for its clients after experiencing payment delays.
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe - We publish new crypto explainer videos every week!
How to Use Crypto? 5 Rewarding Strategies Explained (Animated)
On top of that, in the statement, the company revealed that it was, in fact, Zipmex's Asia division that had submitted a request to extend the moratorium period.
Zipmex claimed it would use the time to restructure and resolve its ongoing liquidity crisis. Moreover, the crypto exchange will work on strategizing and eventually reopening Z Wallet withdrawal services.
Initially, Zipmex applied for a moratorium to delay payments in July 2022 amidst a challenging year for the crypto market. It is worth noting that Zipmex has approximately $5 million exposed to bankrupt crypto lender Celsius.
Prior to the application, the platform had already suspended withdrawals, and CEO Marcus Lim did not dispute allegations of the company's insolvency issues.
In response to the company's request, Singaporean courts granted the moratorium, providing Zipmex until December 2022 to develop a restructuring plan. Despite the granted moratorium, Zipmex has consistently requested further moratorium extensions, with the most recent one potentially extending the deadline to June.
The specific investor mentioned in Zipmex's recent announcement remains unknown. In March, venture capital firm V Ventures allegedly failed to deliver over $1 million in payment, which was crucial for Zipmex to prevent the liquidation of certain operations and maintain payroll for employees.
As Zipmex continues to seek moratorium extensions, the future of the exchange and its efforts to overcome liquidity issues remain uncertain.
However, it is worth noting that Zipmex is not the only crypto firm looking for mercy from the Singapore court. Upon request, Singapore has recently granted Babel Finance with a three-month creditor protection extension.
