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Zipmex says it may resume 100% of Z wallet withdrawals subject to conditions

The creditors have until February 21, 2023, to vote on a new scheme proposed by the company.

Zipmex says it may resume 100% of Z wallet withdrawals subject to conditions Own this piece of history

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According to a new press release on Feb. 15, Thai cryptocurrency exchange Zipmex stated that it sent a new scheme to all firm’s eligible creditors through its scheme manager KordaMentha. As told by Zipmex, the creditors have until Feb. 21, 2023 to vote on the scheme and “will receive 100% of their digital assets in the Z Wallet” if the scheme is approved and the cryptocurrency closes its pending investment deal. 

Last July, Zipmex filed for debt relief in Singapore after its counter-party and crypto lending firm Babel Finance halted withdrawals, citing “unusual liquidity pressures.” The exchange was also impacted by the bankruptcy of crypto lending firm Celsius. Together, the two counterparties owe Zipmex $48 million and $5 million, respectively. 

Zipmex subsequently paused withdrawals on its platform after the revelations last July. However, withdrawals were resumed within two days for its fiat currency and trading funds service Trade Wallet. That said, the firm’s Z Wallet, used for Zipmex services and receipt of earnings and bonuses, remains in the debt moratorium state with gradual resumption of withdrawals.

Cointelegraph previously reported on Dec. 2, 2022, Thai Venture Capital V Ventures will acquire Zipmex for $100 million in cash and crypto. According to court documents, Zipmex plans to use cryptocurrency assets received from the transaction to unlock frozen customer accounts on the exchange by April 2023. Subsequent to the development, on Jan. 11, 2023, the Securities and Exchange Commission of Thailand began a new probe of Zipmex, alleging a breach of local rules. The regulatory agency has also warned investors to carefully review documents issued by the company before making a deal.