Zipmex Proposes 3.35 Cents/Dollar Payout to Creditors: A Crypto Crisis

• Zipmex's Latest Restructuring Plan: Creditor Payment Proposal
• Potential Increase in Payout
• Zipmex's Debt Situation
• Zipmex's Financial Struggles
• Efforts towards Financial Recovery

Zipmex's Latest Restructuring Plan: Creditor Payment Proposal

The embattled cryptocurrency exchange, Zipmex, has unveiled a new restructuring plan. The proposition includes offering to pay creditors 3.35 cents on the dollar, according to information obtained by Bloomberg from sources close to the matter.

Potential Increase in Payout

Depending on the success of the debt restructuring plan, the proposed payout could potentially increase to as high as 29.35 cents on the dollar. Major creditors, however, have shown resistance to the proposals and have requested a review of Zipmex's assets and liabilities, as reported by Bloomberg.

Zipmex's Debt Situation

As per the report, the Singapore-based exchange has a debt of $97.1 million. Zipmex CEO Marcus Lim, in a conversation with Bloomberg, indicated that the report contained inaccuracies. However, he did not offer an immediate response to requests for comments.

Zipmex's Financial Struggles

Zipmex had to halt withdrawals in July 2022 due to a contagion that swept across the market following the collapse of the Terra ecosystem and subsequent crypto lenders. This resulted in an approximate loss of $48 million for Zipmex after it lent funds to Babel Finance, with an additional $5 million exposure to the bankrupt Celsius Network.

Efforts towards Financial Recovery

Like several other crypto firms, Zipmex sought creditor protection as it attempted to secure external capital to cover its losses. Reportedly, Zipmex had agreed to a $100 million deal with V Ventures, a venture capital firm based in Thailand. However, this agreement hit a snag when V Ventures failed to fulfil one of its scheduled payments in March.

Edited by Jonathan Stoker