Zipmex collapse — what creditors were owed and recovered (2022)

Zipmex ran crypto exchanges in Singapore, Thailand, Indonesia and Australia and offered a yield product, ZipUp+, funded by lending customer assets to third parties. It halted withdrawals on 20 July 2022 after disclosing about US$48 million of exposure to Babel Finance and US$5 million to Celsius. Trade-wallet withdrawals were partially reopened, but assets in the Z Wallet stayed frozen.

Five group companies applied to the Singapore High Court for moratoria on 22 July 2022. Protection was granted on 15 August 2022 and extended several times; a judgment of 2 December 2022 recorded close to 70,000 customer creditors across the group. Bloomberg reported that Zipmex sought to restructure about US$97.1 million of debt, and in November 2023 that it had proposed paying creditors 3.35 cents on the dollar, rising to as much as 29.35 cents if recoveries improved. Large creditors objected and pressed for an independent review.

At scheme meetings on 22 November 2023 Zipmex Asia's scheme passed the statutory majority but Zipmex Pte Ltd's did not. Because the schemes were inter-conditional, neither could be implemented. On 11 January 2024 the court dismissed the further moratorium applications, holding it had no power to extend without a continuing restructuring prospect, and recorded that liquidation was imminent.

Thailand's SEC ordered the Thai unit to suspend trading and brokerage from 2 February 2024. Filings dated 29 April 2024 show Ellyn Tan Huixian of Mazars appointed provisional liquidator, with meetings on 20 May 2024 to resolve on voluntary liquidation.