Zipmex, a South Asian crypto exchange, has secured a creditor protection extension until April 2, 2023, according to a newsletter on the company’s website. The Singapore High Court granted the request and rescheduled any further hearings for December 21, 2022.
Zipmex is one of many exchanges that have suspended withdrawals this year. The firm could not refund users’ money due to loans granted to crypto lenders Babel Finance and Celsius Network.
According to the company’s Facebook page, they had exposure of $48 million to Babel and $5 million to Celsius. Since then, these firms have faced a liquidity crisis that resulted in bankruptcy and are currently unable to repay the loans.
To settle the debt, the Asian firm attempted to raise funds from financial institutions and venture capitalists. This attempt, however, was futile. The exchange had previously requested an extension program in order to obtain additional funding.
According to Bloomberg, Zipmex was scheduled for three months of creditor protection, which expires today, December 2.
Rumor is that Zipmex is in advanced talks with V Ventures about a potential investment. Several news outlets have reached out to V Ventures and Zipmex for comment on the allegations.
Only Marcus Lim, CEO of Zipmex, responded to The Block, saying,
“Thank you for your interest in our efforts to make our customers whole. As talks reach a critical and sensitive stage with our potential investor, I am unable to comment as all parties are under NDA and we do not want to jeopardize the deal. Will update you as soon as possible.”
The Monetary Authority of Singapore (MAS) has taken steps to enforce crypto regulations in the country in order to prevent similar incidents from occurring in the future.
If you would like to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, and Instagram.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
