Digital asset exchange Zipmex has announced a vote that could see creditors get 100% of the funds in the exchange’s Z Wallet.
The announcement will see eligible creditors get all their assets from their wallets in the event that the scheme is approved. Creditors have until February 21 to cast their votes on the proposal to free their holdings since July 2022.
At the moment, the funds are being managed by scheme manager KordaMentha, a restructuring firm appointed to assist the firm in forging a recovery firm after its counterparty Babel Finance imploded. Babel Finance claimed it was forced to halt withdrawals over “unusual liquidity pressures” stemming from the collapse of digital asset lending firm Celsius.
With Babel Finance owing over $45 million and suffering exposures of up to $5 million from Celsius, Zipmex was forced to freeze withdrawals for clients in July 2022. However, barely two days later, the exchange allowed withdrawal for one of its wallets, leaving thousands of its Z Wallet users in limbo.
The exchange’s customers primarily use the Z Wallet to receive bonuses and earn new digital currencies. The usage of the wallet served as a portal to other Zipmex products and services, giving it the leverage to amass an impressive number of users in a short period.
Eligible Zipmex users are required to submit the value of digital assets held in the Z wallets ahead of the voting process. The exchange stated that scheme managers would settle any discrepancies before March 21, and the mandate is only for verification purposes.
“Note that the proof of debt is for verification purposes only,” read the official statement. “The creditor will receive 100% of their digital assets in the Z Wallet once we give access to Z Wallets upon approval of the scheme and any investment deals are closed.”
New owners in exchange for funds
Zipmex is set to be acquired by venture capital fund V Ventures in a $100 million deal. Reports on the buyout that emerged last year stated that the funds received from the agreement would be used to unlock customer funds in April 2023.
The embattled exchange has been seeking an extension of a moratorium to prevent creditors from suing as it hopes to put its house in order in the coming weeks. As the exchange grapples with unlocking funds, its co-founder Akalarp Yimwilai is facing an investigation from Thailand’s Securities and Exchange Commission (SEC) for allegedly violating securities laws.
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