Zipmex Requests Singapore Court to Extend Restructuring Plan Due to Liquidity Issues

04/19/2023 22:49 • Tech Ticker • 156 views

According to reports, the cryptocurrency exchange Zipmex has requested the Singapore court to extend the restructuring plan again, which will allow its debt in Singapore to be extended for a longer period of time due to the company’s liquidity issues.

Zipmex applied again to the Singapore court to extend the restructuring plan for 2 months

Zipmex, a popular cryptocurrency exchange, has been facing liquidity issues for some time now. As per recent reports, the company has requested the Singapore court to extend its restructuring plan again, which will allow its debt in Singapore to be extended for a longer period of time. In this article, we will discuss the ongoing situation faced by Zipmex and what it means for the company and its users.

Background

Zipmex is a cryptocurrency exchange founded in 2018 in Singapore. It operates in various countries in the Asia Pacific region, including Indonesia, Thailand, and Australia. The exchange offers trading in popular cryptocurrencies like Bitcoin and Ethereum, along with other altcoins.
The company has been facing liquidity issues for some time now. Things took a turn for the worse when the COVID-19 pandemic hit, affecting the global economy and financial markets. Like many other companies, Zipmex was not immune to the impacts of the pandemic. Its transaction volumes dropped significantly, and traders withdrew their funds, which led to a liquidity crisis.
To overcome this crisis, Zipmex had announced a restructuring plan earlier this year, which aimed to reduce costs and improve the exchange’s profitability. As part of the plan, the company had sought court protection from its creditors in Singapore.

Zipmex Requests Extension of Restructuring Plan

However, as per recent reports, Zipmex is seeking an extension of its restructuring plan as it has yet to reach a viable solution to its liquidity issues. The company has submitted a new application to the Singapore court seeking more time to pay its debts and restructure its operations.
The extension of the restructuring plan will allow the company to have additional time to restructure and generate more revenue. It will also enable the company to continue its operations without the risk of having to liquidate its assets.

Impact on Users

Zipmex users should be aware of the current situation faced by the exchange. The extension of the restructuring plan means that the company will continue its operations, which is a positive sign. However, users should exercise caution and monitor their holdings closely. It is recommended to withdraw your funds from the exchange and move them to a more secure wallet until the situation stabilizes.

Conclusion

Zipmex’s request for an extension of its restructuring plan indicates the severity of its liquidity issues. The cryptocurrency market is highly volatile, and even the most established exchanges are not immune to crises. Zipmex must find a viable solution to its liquidity issues to continue its operations and regain the trust and confidence of its users.

FAQs

Q1. What is Zipmex?
Zipmex is a cryptocurrency exchange founded in 2018 in Singapore.
Q2. What is the reason behind Zipmex’s liquidity issues?
Zipmex’s liquidity issues are mainly due to the impact of the COVID-19 pandemic on the global economy.
Q3. Should Zipmex users withdraw their funds from the exchange?
It is recommended to withdraw your funds from the exchange and move them to a more secure wallet until the situation stabilizes.

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