Zinger Key Points
- Major creditors challenge Zipmex's proposal, demanding a detailed review of the exchange's assets and liabilities.
- Zipmex's financial woes escalated after a $48 million loss to Babel Finance and exposure to Celsius Network.
Cryptocurrency platform Zipmex is offering to compensate its creditors as part of its recent restructuring effort. As for what the compensation rate will be remains uncertain.
What Happened: The Singapore-based company is proposing 3.35 cents per dollar, but the rate might increase to 29.35 cents per dollar, according to Bloomberg.
Zipmex, under the helm of CEO Marcus Lim, is saddled with about $97.1 million in debt. Recall how the exchange incurred a loss of $48 million from funds lent to Babel Finance, in addition to a $5 million risk exposure to the now-bankrupt Celsius Network CEL/USD.
Major creditors have objected to the compensation proposals and demand an independent evaluation of Zipmex's financial standings.
Why It Matters: In July 2022, Zipmex suspended withdrawals amid a broader market crisis triggered by the collapse of the Terra ecosystem and the downfall of several crypto lenders.
Zipmex is among the various crypto entities that sought creditor protection while endeavoring to secure external funding to mitigate its losses.
The exchange was reportedly on the brink of securing a $100 million agreement with V Ventures, a Thai venture capital firm.
However, V Ventures failed to make a scheduled payment in March.
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