Zipmex, a cryptocurrency exchange, has requested an extension to its debt moratorium in Singapore due to liquidity issues. The firm is negotiating with investors to maximize customer returns after payment delays. It has filed a request with Singapore's courts to extend its existing moratorium period by two months, during which it plans to reopen Z Wallet withdrawals.
Zipmex originally filed for a moratorium in July, when it had approximately $5 million in exposure to Celsius and suspended withdrawals. The moratorium allowed the company to postpone payments and restructure. Singapore's courts granted the request until December 2022. However, the exchange has continued to request extensions, with the latest likely pushing its deadlines to June.
In March, V Ventures, a venture capital firm, reportedly did not provide a payment of more than $1 million that was necessary for Zipmex to avoid liquidating certain operations and stop distributing payroll to employees. In its most recent release, Zipmex did not specify whose investment it was alluding to.
Zipmex's CEO, Marcus Lim, has not denied reports of insolvency. The exchange is one of several in Singapore that have faced regulatory scrutiny in recent months. Singapore's central bank warned investors in May 2021 to be cautious when dealing with crypto exchanges due to the potential risks, including money laundering and terrorism financing.
In conclusion, Zipmex has requested an extension to its debt moratorium in Singapore as it faces liquidity issues. The company is negotiating with investors to maximize customer returns and plans to reopen withdrawals during the extended moratorium period.
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