Zimpex crypto exchange’s recent statement confirmed the existence of a rescue deal awaiting closure before the Asian firm resumes customer withdrawals. Zipmex chief executive Marcus Lim disclosed that the Asian exchange secured a rescue arrangement that is at an advanced stage.
The rescue deal is a critical part of Zimpex’s restructuring efforts after suffering from the prolonged crypto winter.
Rescue Deal Awaiting Conclusion
While the parties involved have signed the deal, plans to restart withdrawals would delay till it is finalized. Lim regrets the continued delay in resuming withdrawal services by pleading with the affected users to exercise patience as the deal closes.
Zimpex suffered a strangling credit crunch in 2022, forcing it to suspend withdrawals. The crypto exchange would, in January, reveal a successful offer from a venture capital firm that would inject substantial resources to resume operations.
Scheme Management Advances Verification Process
Lim’s subsequent update indicated that Zimpex is yet to furnish details on the amount owed to the eligible creditors. By February 21, the firm’s scheme manager KordaMentha announced partial advancement in the process, whose completion would reveal the true position of eligible creditors. Nevertheless, the investment firm expressed optimism about finalizing the deal by March 21 to allow withdrawals.
Zipmex’s chief executive lauded the process that began in November and is now in the advanced talks. The crypto exchange official echoed the update conveyed by the firm’s blog post revealing progress in the talks.
Reviewing Zipmex Liquidity Crisis
Zipmex is among crypto firms trumped by the liquidity crisis that hit the industry following the sudden implosion of Terra and its crisis-ridden UST stablecoins. The firm would confront a plummeting spell as UST battled its inevitable death spiral that crashed its $40 billion empire.
In particular, Zipmex suffered distressed debt from $53 M loans advanced to Celsius Network and Babel Finance. To date, the loans remain unpaid.
The statement conveyed on the Zipnex blog invites eligible creditors to disclose the digital assets holdings within the Z wallet. Besides inviting creditors to complete the disclosure forms, Zipmex directed users to check their Z wallet balances via the portal.
The statement conveyed on the post ruled out the ZMT hosted within the ZipLock from the scheme arrangement. However, the statement informed users they could transfer ZMT and Gold from the Z wallet to the Trade Wallet.
Lim clarified that Zimpex would only consider the existing ZMT and Gold balances held within Z Wallet during voting as eligible for the scheme’s resolution purpose.
Adjudicating Discrepancies in Z Wallet Balances
The executive added that discrepancies in actual balances would constitute the critical element of the adjudication process. Scheme managers would also finalize such disputes by March 21.
Lim clarified that the proof-of-debt process served verification purposes. He restated that creditors would receive the entire value of digital assets holdings. He pleaded with the users to exercise patience for the scheme’s approval and closure of the investment deal.
Beyond the rescue deal, Zipmex is under Thai’s regulator radar, with the country’s securities watchdog alleging the crypto exchange operated without authorization.
Thai’s SEC penned a letter to then-chief executive Akalarp Yimwilai alleging a violation of digital assets rules violation. The regulator accuses Zimpex of operating as a digital asset fund manager without authorization.
HeraldSheets.com produces top quality content for crypto companies. We provide brand exposure for hundreds of companies. All of our clients appreciate our services. If you have any questions you may contact us. Cryptocurrencies and Digital tokens are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by our authors and the views expressed in them do not reflect the views of this website. Herald Sheets is not responsible for the content, accuracy, quality, advertising, products or any other content posted on the site. Read full terms and conditions / disclaimer.