Financial Woes Lead Zipmex to Move Towards Voluntary Liquidation

Financial Woes Lead Zipmex to Move Towards Voluntary Liquidation

by May 7, 2024

Singapore-based cryptocurrency exchange Zipmex is set to wind up its operations, having appointed Ellyn Tan Huixian from Mazars Consulting as its provisional liquidator, according to documents filed with Singapore’s Accounting and Corporate Regulatory Authority (ACRA).

The filing, dated 29 April 2024, accessed by DealStreetAsia, comes as the company grapples with significant financial liabilities that prevent it from continuing its business, stated Zipmex founder and CEO Marcus Lim.

An extraordinary general meeting (EGM) along with a creditor’s meeting is scheduled for 20 May, where a special resolution will be presented to voluntarily liquidate the company.

A permanent liquidator will be appointed in the upcoming weeks to oversee the final dissolution process.

This decision follows a troubled period marked by liquidity challenges exacerbated by the volatile crypto market and difficulties faced by key business partners.

Notably, Zipmex had halted withdrawals on its Z Wallet platform in July 2022 following a liquidity crisis at its lenders, Babel Finance and Celsius, which coincided with a broader downturn in the crypto sector.

Previously, DealStreetAsia reported that despite launching a new restructuring offer five months ago, Zipmex continued to face opposition from major creditors.

The platform, which operates in Australia, Thailand, Indonesia, and Singapore, also attempted to secure fresh investments to avert liquidation after a potential US$100-million acquisition deal fell through.

Financial disclosures reveal that Zipmex suffered a substantial loss of S$23.75 million (US$17.77 million) for the fiscal year ending 31 December 2021, representing a 400% increase from the previous year.

The company’s operating expenses surged to S$36 million, with a significant portion allocated to employee compensation.