FAQ for the Restructuring Proceedings of the Zipmex Group of Companies
|1||Regarding the new restructuring plan, the creditors will receive assets back in the form of USDC, representing 5.1% of total liabilities. How will the returning assets be calculated if the client possesses BTC, ETH, and ZMT?||The number of USDC digital tokens received under the distribution, plan will be calculated based on the value of the adjudicated debt in the scheme of arrangement process.|
Both the calculations of the value of the customer’s BTC, ETH, and ZMT; and the number of USDC to be issued will be pegged to the same date (i.e. if the adjudication date is 22 September 2022, the number of USDC issued will also be pegged to the value of USDC as of 22 September 2022).
|2||The company intends to return assets to the creditors within 3-4 months after the new restructuring is effective. When will the new restructuring be effective?||Based on the projected timeline, we hope to hold the creditors’ meetings by late September|
Following the meetings, Zipmex’s lawyers have to make further applications to the Singapore Court. Zipmex targets to have the applications for approval to be heard by mid-October 2023.
If the Court approves the schemes of arrangement, the schemes of arrangement will become effective shortly after the orders of the court are lodged with Singapore’s ACRA.
|3||Will the remaining assets be returned to the clients 100%?||No.|
|4||In the case of assets that can be sold immediately, the ETH and ZMT that the company intends to sell. Are these the assets frozen in StraitsX?||No, these are separate assets from the assets frozen in StraitsX.|
|5||The assets returned as 5.1% of total liabilities, do we value from the amount of THB or the amount of coins?||It is the dollar value of the debt as calculated at the adjudication date set by the scheme of arrangement.|
|6||What is a leave to convene?||Under Singapore law, before a meeting of creditors can be held, the company needs to seek the Singapore Court’s approval to hold the meeting.|
The technical name of this application for approval is an “application for leave to convene meetings of the Company’s creditors under Section 210(1) of the Companies Act 1967”.
|7||Why have members been kicked out of Zipmex’s official Line and Telegram chats?||There have been substantial reports of abusive, foul, and adversarial language used in the group chats. As moderators, Zipmex retains the full and absolute right to restrict access to users who have demonstrated such behaviour, on a case-by-case basis.|
Nonetheless, following the hearing on 30 June 2023, Zipmex has taken steps to restore access to all affected accounts to these group chats. However, should such behaviour be repeated or reported, Zipmex will not hesitate to exercise its right to moderate such group chats to ensure the safety of its officers, customers, and employees.
Please reach out to a chat admin or Zipmex customer service if you have not been granted access.
|8||When will vendor creditors receive the distribution?||All creditors (both vendors and customers) will receive the distribution under the scheme at the same time.|
|9||Please explain how the total value of Z Wallet (on 21 July 2022) which is approximately $96m decreased to only $48m (Babel) + $5m (Celsius)||First, the value reflected in the monthly management accounts are digital assets held on-book. Customer assets are off-book and will not be reflected in the monthly management accounts. The value of “crypto assets” held in September 2022 was SGD 4.6 million.|
Second, the value reflected is marked to market on a monthly basis. The shifting value of crypto assets will affect the monetary value presented.
Third, the value of the Babel and Celsius debt reflected in the accounts are claims against Babel and Celsius – to which recovery is uncertain.
Finally, the assets recorded under the Z Wallet in the consolidated accounts take into account customer withdrawals of unlocked currency from the Z Wallet.
The transfers to trade wallet that were allowed following the entry into the moratorium include:
• On 2 August 2022, a maximum of USD 200 in value and all SOL tokens;
• On 4 August 2022, all XRP tokens;
• On 9 August 2022, all ADA tokens;
• On 11 August 2022, 0.08 ETH per
• On 16 August 2022, 0.0045 BTC per
Expenses incurred by the Zipmex Group through the course of the moratorium were incurred due to the previous investor’s requirement for all entities in the Zipmex Group to maintain “business as usual” operations to continue to restore growth in the Zipmex Group.
No customers’ funds were used for operating expenses
|10||Did someone withdraw the assets from Z Wallet before and after the moratorium illegally?||The Zipmex Group has conducted its own internal investigations and does not believe that this is the case.|
At all times, the director(s) of Zipmex Asia has received legal advice and input from its counsel and financial advisers prior to any significant transactions.
|11||Is Zipmex Thailand under investigation by the Thai SEC?||All fines against Zipmex Company Limited and its director have been paid to the SEC in full.|