Zipmex seeks further extension on moratorium window

Troubled crypto exchange Zipmex is looking to extend the current moratorium on creditor protection by another two months to enable the company to find a solution regarding reopening its Z wallet. 

Zipmex filed an application with the Singapore court for an additional two months on its moratorium, as stated in an update on April 18. The request for an extension comes after its investor delayed tranche payments. 

However, Zipmex’s update revealed that the investor, whose name was not mentioned, claimed that the Scheme of Arrangement had lapsed and was no longer bound by the terms of the agreement. 

Zipmex mentioned in a letter to the court that the investor proposed paying 10 to 20% to the crypto exchange’s creditors, against the original arrangement to make a 100% payment. Meanwhile, the latest update also stated that the investor requests a return on its working capital loan. 

While the crypto exchange has acknowledged that the investor’s position could affect the reopening of its Z wallet, the extension will give the company more time to reopen withdrawals on the Z wallet. Zipmex also seeks new investors to “maximize returns for customers.” 

This is not the first time Zipmex has extended its creditor protection window after halting withdrawals in July 2022 following its exposure to distressed cryptocurrency lenders Celsius and Babel Finance. With the latest extension scheduled to expire on April 23, Zipmex may have until June if the court grants its latest application.