Zipmex applied for up to 6 months extension, however, the court only granted an extension valid until December 2.
In July, crypto exchange Zipmex suspended withdrawals and filed for bankruptcy protection from potential creditors to buy enough time to devise a funding plan. Zipmex Group claimed to be having liquidity issues and applied for a moratorium extension for its five entities: Zipmex, Zipmex Asia, Zipmex Thailand, Zipmex Indonesia, and Zipmex Australia. It applied for up to 6 months extensions, however, the court only granted an extension valid until December 2. Until then, the company would be free from potential creditor lawsuits.
According to its blog post, it deposited funds into several crypto lending platforms including the Celsius Network. This was done for its ZipUp+ product. Following the market condition, it attempted to withdraw funds from all of its deposit partners. Unfortunately, Celsius informed the exchange on June 3, 2022, that it has halted withdrawal due to unforeseen circumstances. On July 14, Celsius declared bankruptcy. During that period, Babel Finance, another deployment partner, also claimed to be having liquidity issues. It was expected that Babel would resolve the issue within a short time, but a meeting between the partners on July 20 gave the company a serious reservation on this possibility. This influenced their temporal decision to suspend transfers between Z wallets and Trade wallets.
According to them, several measures are underway to raise funds to resolve the issue.
“Zipmex is exploring multiple avenues. Firstly, Zipmex is working towards the return of assets from Babel Finance. Secondly, we are in advanced fundraising conversations which will allow us to re-enable Z Wallet transfers,” the firm wrote.
Their cause has been supported by a shareholder who has made an additional investment into their native Zipmex Token (ZMT). This is to boost investors’ confidence in the token and the firm’s business. Also, the exchange announced that it had signed a Memorandum of Understanding with two investors and is expediting due diligence.
The company claims to have resumed operation by transferring unaffected assets from the customer’s Z wallets to their Trade wallets. Some of these assets include Solana (SOL), Cardano (ADA) , and XRP. The company has also assured that Bitcoin (BTC) and Ethereum (ETH) would equally be transferred to customers.
“We remain committed to complete transfers of all customers’ assets in a gradual manner and to accelerating all actions to resume the full service of Z Wallet,” the company said.
Excellent John K. Kumi is a cryptocurrency and fintech enthusiast, operations manager of a fintech platform, writer, researcher, and a huge fan of creative writing. With an Economics background, he finds much interest in the invisible factors that causes price change in anything measured with valuation. He has been in the crypto/blockchain space in the last five (5) years. He mostly watches football highlights and movies in his free time.
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