The troubled cryptocurrency exchange Zipmex has proposed repaying its creditors 3.35 cents per dollar for their initial claims as part of its restructuring efforts.

People familiar with the matter told Bloomberg that the figure could rise to as much as 29.35 cents per dollar depending on recoveries made from the exchange’s amended restructuring plan as it seeks to settle a debt of more than $97 million.

Zipmex to Pay 3.35 Cents Per Dollar

As expected, Zipmex’s major creditors are against the exchange’s proposal and have requested an independent review of its assets and liabilities. They intend to vote on the current restructuring plan by early December.

Zipmex’s co-founder and CEO Marcus Lim said the number reported by journalists was inaccurate but refused to disclose the details of the proposed scheme.

The latest development comes a few days after Zipmex temporarily suspended all crypto trading and deposits in Thailand to comply with regulatory requirements from the Securities and Exchange Commission (SEC). Customers have been asked to contact customer support for withdrawals if their assets remain on the platform after January 31, 2024.

Zipmex got stuck in troubled waters in July 2022 and has been looking for a way out. The exchange froze withdrawals after it was caught up in the contagion triggered by the Terra ecosystem’s implosion. Its case was worsened by a $53 million exposure to the failure of crypto lenders Babel Finance and Celsius Network.

The distressed exchange has repeatedly asked the court to extend the period for its creditor protection to enable it to develop a suitable restructuring plan.

Zipmex’s Deal With V Ventures

In December 2022, Thailand-based venture capital firm V Ventures signed a deal with Zipmex to acquire 90% of the company for $100 million in cash and crypto assets. The agreement entailed the cryptocurrencies being used to gradually unlock users’ frozen assets by April 2023.

Unfortunately, V Ventures did not complete the fourth tranche of the payment, which was due on March 23. The delay in payment was followed by a fresh proposal to pay Zipmex’s creditors about 10% to 20% of their claims, a far cry from the original buyout proposal for a full payment.

V Ventures said its new offer was a result of Zipmex’s failure to meet the terms stated in the initial proposal.