The infamous cryptocurrency exchange Zipmex has been given a 3-month extension of its creditor protection by the Singapore High Court to devise a funding plan.
Zipmex is one of the latest crypto exchanges that fell victim to the domino effect of volatility in cryptocurrency that forced its lenders Babel and Celsius to default in which both companies also encountered the same crisis by their lenders as well.
Zipmex disclosed in its statement in July that it had US$48 million exposure to Babel and US$5 million with Celsius.
The company filed an application on Jul 22 for a bankruptcy protection from potential creditor lawsuits for up to six months in which it had been given an automatic moratorium for 30 days after the filing or until the Singapore Court makes a decision on the application.
However, the court raised concerns about Zipmex’s insufficient engagement with creditors, especially customers in Thailand, and granted a three-month extension to December 2 for the group to solve the case. Still, further extension is also possible.
Zipmex operates in Singapore, Thailand, Indonesia and Australia according to its website.
Plan B Media Public Company Limited (SET: PLANB) and Master Ad Public Company Limited (SET: MACO) are the two listed companies in Thailand that invested in Zipmex. Both companies saw a decline in share prices after the news broke out on July 16 over Zipmex’s filing for bankruptcy.
