Zipmex has hired KordaMentha as its financial adviser to oversee a plan to get back on its feet.
After having to stop withdrawals and file for protection from creditors in July, Singapore-based cryptocurrency exchange Zipmex hired a restructuring firm to help with a plan to get back on its feet.
The exchange said on its website that the Australian firm KordaMentha would work with the exchange’s lawyers, Morgan Lewis Stamford, to figure out the best way to reorganize the company and keep its assets.
Zipmex is one of many cryptocurrency companies that went out of business when the market dropped earlier this year. In six months, the price of bitcoin dropped from $69,000 to $17,000. This caused lenders like Celsius Network and Voyager Digital to go bankrupt and the Singapore-based hedge fund Three Arrows Capital to fall apart. Zipmex gave $48 million to Babel Finance, which was also a cryptocurrency lender, and $5 million to Celsius. Neither of these loans has been paid back.
On August 15, Zipmex got three months of creditor protection in Singapore. This gave them time to come up with a plan to get back on their feet. The company has started to allow withdrawals again. Customers can now move 0.0045 BTC ($96) from their previously locked Z wallets to their Trade wallets. Other tokens are also available.
Before Sept. 15, there will be a virtual town hall.
When we asked Zipmex and KordaMentha for comment, neither company replied right away.
