Re Zipmex Co Ltd: Extension of Moratoria and Administrative Convenience Class in Cryptocurrency Exchange Restructuring

The Singapore High Court considered applications by Zipmex Company Limited, Zipmex Pte Ltd, Zipmex Asia Pte Ltd, Zipmex Australia Pty Ltd, and PT Zipmex Exchange Indonesia for an extension of moratoria and approval of an administrative convenience class in their restructuring efforts. The court granted the extension of the moratoria until April 2, 2023, but did not make any orders regarding the administrative convenience class. The court emphasized the importance of keeping the court informed when its jurisdiction is invoked.

1. Case Overview

1.1 Court

General Division of the High Court

1.2 Outcome

Applications for extension of time were allowed, with extensions granted until 2023-04-02. No orders were made as to the prayers seeking the approval of the creation of administrative convenience class.

1.3 Case Type

Insolvency

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Singapore High Court addresses Zipmex Group's application for moratoria extension and administrative convenience class in restructuring cryptocurrency exchange platform.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Zipmex Pte LtdApplicantCorporationExtension of time allowedPartial
Zipmex Asia Pte LtdApplicantCorporationExtension of time allowedPartial
Zipmex Company LimitedApplicantCorporationExtension of time allowedPartial
Zipmex Australia Pty LtdApplicantCorporationExtension of time allowedPartial
PT Zipmex Exchange IndonesiaApplicantCorporationExtension of time allowedPartial

3. Judges

Judge NameTitleDelivered Judgment
Aedit AbdullahJudge of the High CourtYes

4. Counsels

Counsel NameOrganization
Tang Yuan JonathanMorgan Lewis Stamford LLC

4. Facts

  1. Zipmex Group operates a cryptocurrency exchange platform.
  2. The applicants sought a further extension of time for the moratoria.
  3. The restructuring was progressing, with a high chance of success.
  4. Pre-packaged schemes of arrangement were being pursued.
  5. An investor was taking shares through a share subscription agreement.
  6. No creditors expressed objections to the restructuring as of the oral hearing date.
  7. Zipmex Indonesia unfroze wallets pursuant to Indonesian regulatory requirements.

5. Formal Citations

  1. Re Zipmex Co Ltd and other matters, , [2022] SGHC 306

6. Timeline

DateEvent
Oral hearing date
Judgment date
Insolvency, Restructuring and Dissolution Act 2018 enacted
Insolvency, Restructuring and Dissolution Act 2019 (2020 Rev Ed) enacted
Moratoria extended until this date
Super-priority financing application hearing date

7. Legal Issues

  1. Extension of Moratoria
    • Outcome: The court granted the extension of the moratoria until 2023-04-02.
    • Category: Substantive
  2. Creation of Administrative Convenience Class
    • Outcome: The court did not make any orders regarding the creation of an administrative convenience class at this stage.
    • Category: Procedural

8. Remedies Sought

  1. Extension of moratoria
  2. Approval of administrative convenience class

9. Cause of Actions

  • No cause of actions

10. Practice Areas

  • Insolvency
  • Restructuring

11. Industries

  • Financial Services
  • Cryptocurrency

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Re Zipmex Co Ltd and other mattersHigh CourtYes[2022] SGHC 196SingaporeCited for granting an extension of a moratoria operating in favour of the applicants.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Insolvency, Restructuring and Dissolution Act 2019Singapore
Section 71 of the Insolvency, Restructuring and Dissolution Act 2019Singapore
Section 64 of the Insolvency, Restructuring and Dissolution Act 2018Singapore
Section 67 of the IRDASingapore
Section 71(2) of the IRDASingapore

15. Key Terms and Keywords

15.1 Key Terms

  • Moratoria
  • Pre-packaged scheme of arrangement
  • Administrative convenience class
  • Cryptocurrency exchange
  • Share subscription agreement
  • Zipmex App

15.2 Keywords

  • Zipmex
  • moratoria
  • insolvency
  • restructuring
  • cryptocurrency
  • scheme of arrangement

17. Areas of Law

Area NameRelevance Score
Insolvency Law95
Restructuring and Dissolution90
Moratorium85
Schemes of Arrangement80
Bankruptcy70
Cross-Border Insolvency65
Company Law60

16. Subjects

  • Insolvency Law
  • Restructuring
  • Corporate Law