Zipmex Proposes New Scheme for Creditors Amid Financial Turmoil

Zipmex's New Proposal for Creditors

Zipmex, a prominent Thai cryptocurrency exchange, has introduced a new scheme aimed at its creditors. The scheme, managed by KordaMentha, offers creditors the opportunity to reclaim 100% of their digital assets stored in the Z Wallet. This proposal is contingent upon the approval of the scheme and the successful conclusion of a pending investment deal. Creditors have been given a deadline until February 21, 2023, to cast their votes on the proposal.

Financial Challenges and Debt Relief

The financial difficulties faced by Zipmex are linked to last year's events when the exchange sought debt relief in Singapore. This action followed the suspension of withdrawals by Babel Finance, one of its key counterparties, due to extraordinary liquidity pressures. Babel Finance's struggles have significantly impacted Zipmex's financial stability.

Impact of Counterparties' Bankruptcies

The situation was further exacerbated by the bankruptcy of another crypto lending firm, Celsius. These two entities owe Zipmex substantial amounts, with Babel Finance and Celsius owing $48 million and $5 million, respectively. The combined debt from these counterparties has strained Zipmex's financial resources, prompting the need for a strategic resolution for its creditors.

Future Prospects for Zipmex

Zipmex's proposal represents a critical step towards financial recovery and stability. If the creditors approve the scheme and the investment deal closes successfully, it could pave the way for Zipmex to regain its footing in the cryptocurrency market. The outcome of this vote will be pivotal in determining the exchange's future operations and its ability to meet the obligations to its creditors.