Cryptocurrency exchange Zipmex has requested another extension that would allow a longer moratorium on its debt in Singapore amid the firm’s liquidity problems.
On April 18, Zipmex announced that it was negotiating with investors to “maximize benefits for clients” following late payments. The company said its Asian arm had filed an application with the Singapore courts to extend the existing moratorium period by two months. According to the exchange, it will use the additional time to plan and reopen Z Wallet withdrawals.
Zipmex originally requested a moratorium allowing the firm to postpone payments to July 2022, in the midst of a tumultuous year for the cryptocurrency market – the company had roughly $5 million in Celsius exposure. The platform had suspended withdrawals earlier that month, while CEO Marcus Lim did not deny reports that the firm was facing insolvency.
Singapore courts granted Zipmex’s requested moratorium, giving the company until December 2022 to submit a restructuring plan. However, the platform has continued to request extensions to the moratorium, with the most recent likely extending the deadlines until June.
It is unclear which investor Zipmex was referring to in his latest announcement. In March, venture capital firm V Ventures allegedly failed to provide a payment of more than $1 million needed for Zipmex to avoid liquidating certain deals and stop distributing payroll to employees.
Update (April 18 9:18 PM UTC): Zipmex said in response to a Cointelegraph query that a Singapore court has granted the extension until April 23.
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