Zipmex's Proposal: Offering Creditors 3.35 Cents on the Dollar

In a recent twist of events, the cryptocurrency exchange Zipmex, grappling with financial challenges, has put forth a new proposition in its restructuring plan. According to information from insider sources reported by Bloomberg, Zipmex is suggesting a payout of 3.35 cents on the dollar. However, there is potential for this figure to rise significantly to 29.35 cents on the dollar, contingent on the outcomes of the ongoing debt restructuring efforts.

This proposed plan has not been well-received by major creditors, prompting them to push back and call for an independent evaluation of Zipmex's assets and liabilities. The exchange, headquartered in Singapore, is reportedly burdened by a substantial debt amounting to $97.1 million.

CEO Marcus Lim of Zipmex has contested the accuracy of the details reported by Bloomberg.

Zipmex encountered a significant setback in July 2022 when it halted withdrawals, attributing it to a market-wide contagion triggered by the collapse of the Terra ecosystem and subsequent challenges faced by various crypto lenders. Notably, the exchange suffered a loss of $48 million after extending loans to Babel Finance, coupled with an additional exposure of $5 million to the now-bankrupt Celsius Network.

In response to financial adversity, Zipmex, alongside other cryptocurrency firms, sought creditor protection as part of its strategic effort to secure external capital and recover from incurred losses. Initial reports indicated that Zipmex had entered into a $100 million deal with V Ventures, a venture capital firm based in Thailand. However, this agreement hit a roadblock in March when V Ventures missed a scheduled payment, resulting in a suspension of the deal.

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