Digital assets exchange Zipmex has continued working on coming out of the liquidity crunch it is facing. The exchange has revealed that it is working on a recovery plan and is set to carry out a fund-raising.
Zipmex is making arrangements to introduce its potential investors to the regulators in Thailand, where it operates a licensed exchange, according to a report by Bloomberg. The exchange has already submitted a letter requesting meetings with the securities regulator, read a recently released statement.
“We have requested meetings with Thailand’s Securities Exchange Commission and regulators in the country where we operate to introduce our investors to regulators and present our recovery plan to government agencies,” the statement said.
The statement comes after the Thai SEC opened a consumer complaint page for users that were affected by the exchange’s suspension of withdrawals in late July. The regulator also directed the exchange to report on its financial situation.
The names of the potential investors are not known. However, Zipmex had hinted at being close to completing a $40 million funding round at a $400 million valuation back in June. It recently noted that it was in “advanced stages” of discussion with two investors after signing three memorandums of understanding (MOUs) over the last month.
Zipmex looking to maximize its creditor protection status
In another statement on the same day, the Singapore-based firm gave an update on the execution of its restructuring plan. The exchange says it has appointed representatives from KordaMentha Pte Ltd to be its financial advisors and managers.
KordaMentha will work closely with Morgan Lewis Stamford LLC, the exchanges appointed solicitors in Singapore, to help Zipmex through the restructuring process. The parties will also participate in a town hall meeting with investors scheduled to take place on September 15.
The update came after Zipmex was granted a three-month creditor protection from a Singapore court. In this period, creditors cannot open bankruptcy proceedings on it as it tries to restructure. The exchange initially filed a moratorium that will give it about five months of protection.
Meanwhile, the restructuring plan already seems to be paying off. The exchange has been resuming services it suspended. According to an announcement on Twitter, it has now resumed re-enabled transfers of its native ZMT token from its Z-wallet to Trade Wallet service.
Previously, it also resumed withdrawals for users of its Trade Wallet. However, withdrawals are still on pause for users of its interest-earning Z Wallet service.
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