Re Zipmex Pte Ltd: Sanction of Schemes of Arrangement & Administrative Convenience Class in Cryptocurrency Platform Insolvency
The Singapore High Court considered applications by Zipmex Asia Pte Ltd, Zipmex Pte Ltd, Zipmex Australia Pty Ltd, Zipmex Company Limited and PT Zipmex Exchange Indonesia for the sanction of pre-packaged schemes of arrangement and extension of moratoria under the Insolvency, Restructuring and Dissolution Act 2018. The court approved the schemes, including the creation of an administrative convenience class for low-value creditors, finding that the statutory requirements were met and that the arrangement was workable and did not unduly prejudice creditors.
1. Case Overview
1.1 Court
General Division of the High Court of the Republic of Singapore1.2 Outcome
Applications for the Court’s sanction of “pre-packaged” schemes of arrangement and the accompanying applications for extension of time of moratoria were allowed.
1.3 Case Type
Insolvency
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Singapore High Court sanctions Zipmex Group's schemes of arrangement, approving an administrative convenience class for low-value creditors in a cryptocurrency platform insolvency.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Zipmex Pte Ltd | Applicant | Corporation | Application Allowed | Won | Daniel Chia Hsiung Wen, Tang Yuan Jonathan, Charlene Wee Swee Ting |
| Zipmex Asia Pte Ltd | Applicant | Corporation | Application Allowed | Won | Daniel Chia Hsiung Wen, Tang Yuan Jonathan, Charlene Wee Swee Ting |
| Zipmex Australia Pty Ltd | Applicant | Corporation | Application Allowed | Won | Daniel Chia Hsiung Wen, Tang Yuan Jonathan, Charlene Wee Swee Ting |
| Zipmex Company Limited | Applicant | Corporation | Application Allowed | Won | Daniel Chia Hsiung Wen, Tang Yuan Jonathan, Charlene Wee Swee Ting |
| PT Zipmex Exchange Indonesia | Applicant | Corporation | Application Allowed | Won | Daniel Chia Hsiung Wen, Tang Yuan Jonathan, Charlene Wee Swee Ting |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Aedit Abdullah | Judge of the High Court | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Daniel Chia Hsiung Wen | Morgan Lewis Stamford LLC |
| Tang Yuan Jonathan | Morgan Lewis Stamford LLC |
| Charlene Wee Swee Ting | Morgan Lewis Stamford LLC |
4. Facts
- Zipmex Group operates a cryptocurrency platform.
- Zipmex Asia is the group holding company incorporated in Singapore.
- Zipmex Singapore is a Singapore subsidiary.
- Zipmex Australia is an Australian subsidiary.
- Applicants sought sanction of pre-packaged schemes of arrangement.
- An administrative convenience class was created for creditors with claims under US$5,000.
- Scheme creditors of Zipmex Asia voted in one class.
- Scheme creditors of Zipmex Singapore and Zipmex Australia voted in two classes: Vendor Creditors and Customer Creditors.
5. Formal Citations
- Re Zipmex Pte Ltd and other matters, , [2023] SGHC 88
6. Timeline
| Date | Event |
|---|---|
| Applicants requested an extension of time of the moratoria | |
| Hearing date | |
| Judgment date |
7. Legal Issues
- Classification of Creditors
- Outcome: The court approved the creation of an administrative convenience class for creditors with claims below US$5,000.
- Category: Substantive
- Sub-Issues:
- Creation of administrative convenience class
- Treatment of low-value creditors
- Sanction of Scheme of Arrangement
- Outcome: The court sanctioned the pre-packaged schemes of arrangement.
- Category: Substantive
8. Remedies Sought
- Sanction of schemes of arrangement
- Extension of moratoria
9. Cause of Actions
- No cause of actions
10. Practice Areas
- Insolvency
- Restructuring
- Corporate Law
11. Industries
- Financial Services
- Cryptocurrency
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Re Zipmex Co Ltd | High Court | Yes | [2022] SGHC 306 | Singapore | Cited for previous discussion of the administrative convenience class and concerns regarding its juridical basis. |
| Re DSG Asia Holdings Pte Ltd | High Court | Yes | [2021] SGHC 209 | Singapore | Cited for the requirements under section 71 of the Insolvency, Restructuring and Dissolution Act 2018, namely disclosure of information and satisfaction of statutory majority requirements. |
13. Applicable Rules
| Rule Name |
|---|
| Rules of Court 2021 |
| O 3 rr 2(2) and 2(3) of the Rules of Court 2021 |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Insolvency, Restructuring and Dissolution Act 2018 | Singapore |
| Section 71 of the Insolvency, Restructuring and Dissolution Act 2018 | Singapore |
| Companies Act 1967 | Singapore |
| Section 210 of the Companies Act 1967 | Singapore |
| Section 210(3AB) of the Companies Act | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Schemes of arrangement
- Administrative convenience class
- Moratoria
- Cryptocurrency platform
- Insolvency
- Restructuring
15.2 Keywords
- Insolvency
- Scheme of Arrangement
- Cryptocurrency
- Zipmex
- Administrative Convenience Class
16. Subjects
- Insolvency
- Schemes of Arrangement
- Administrative Law
17. Areas of Law
- Insolvency Law
- Schemes of Arrangement
- Corporate Restructuring