Zipmex Faces Financial Distress: Proposes Restructuring Plan

Zipmex, a struggling Thai cryptocurrency exchange, is in financial turmoil and has presented a restructuring plan to address its $97 million debt to customers. The proposed plan offers creditors a mere "about 3.35 cents" on the dollar, falling significantly short of the total owed.

CEO Marcus Lim Addresses Restructuring Amid Discontent

CEO Marcus Lim has refrained from confirming the exact details but acknowledges discrepancies in reported figures. Major creditors express discontent and call for an independent review of the company's assets, displaying a lack of confidence in the provided numbers.

Contingent Increase in Repayment Raises Concerns

The proposal hints at a potential increase in repayment from 3.35 cents to 29.35 cents per dollar, but this is "contingent on the recovery" of the company's financial status, adding an element of uncertainty.

Zipmex's Struggle Since August 2022

Zipmex's financial struggles surfaced in August 2022 when it filed for bankruptcy protection, citing difficulties linked to its $53 million exposure to crypto lenders Babel Finance and Celsius. The exchange, which suspended withdrawals in July, has faced ongoing challenges, repeatedly seeking debt moratorium extensions.

Critical Juncture: Creditors' Vote in December

The outcome of the creditors' vote on the restructuring plan, scheduled for early December, is eagerly awaited. This underscores the critical juncture at which Zipmex finds itself.

Trading Operations Pause in Thailand

Zipmex recently announced a suspension of trading operations in Thailand, effective from November 25, 2023, at 1:00 PM. This decision aligns with compliance to Thailand’s Securities and Exchange Commission (SEC) regulations. Customers are advised on alternative withdrawal procedures after January 31, 2024.