Crypto Exchange Zipmex Appoints Restructuring Firm to Forge Recovery Plan

KordaMentha has been appointed as Zipmex's financial adviser to oversee a recovery plan.

AccessTimeIconAug 26, 2022 at 10:52 a.m. UTC
Updated May 9, 2023 at 3:54 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Singapore-based cryptocurrency exchange Zipmex has appointed a restructuring firm to assist with a recovery plan after it was forced to halt withdrawals and file for protection from creditors in July.

Australian firm KordaMentha will work with the exchange's solicitors, Morgan Lewis Stamford, on how best to reorganize the company and preserve assets, the exchange said in a statement on its website.

In a separate announcement, Zipmex said it is in "advanced talks" with two potential investors. The exchange added that it has asked to meet with Thailand’s Securities Exchange Commission to present the potential investors and a recovery plan.

In July, Thailand's SEC asked Zipmex for clarity in relation to assets under management after withdrawals were frozen.

Zipmex is one of many crypto companies that withered as the market slid earlier this year. Bitcoin (BTC) fell from $69,000 to $17,000 in six months, bankrupting lenders including Celsius Network and Voyager Digital while Singapore-based hedge fund Three Arrows Capital imploded. Zipmex loaned $48 million to Babel Finance, also a crypto lender, and $5 million to Celsius, none of which has been repaid.

On Aug. 15, Zipmex received three months of creditor protection in Singapore, granting it time to devise a recovery strategy. The firm has started to reopen withdrawals, with customers now being allowed to transfer 0.0045 BTC ($96) to their Trade wallets from the previously locked Z wallets with other tokens also available.

A virtual town hall is planned to take place before Sept. 15.

Neither Zipmex nor KordaMentha immediately responded to CoinDesk's request for comment.

UPDATE (Aug. 26, 15:14): Adds details of two potential investors, Zipmex's proposed meeting with Thailand's SEC.


Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.

Oliver Knight

Oliver Knight is a CoinDesk reporter based between London and Lisbon. He does not own any crypto.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.