Zipmex, a Singapore-based cryptocurrency exchange, has proposed a restructuring plan to pay its creditors 3.35 cents on the dollar, which is lower than what the creditors expected. The restructuring plan proposes a payout of up to 29.35 cents on the dollar, depending on the success of the debt recovery plan. However, major creditors have opposed the restructuring plan and requested an independent review of Zipmex’s assets and liabilities.

Zipmex reportedly has a debt of $97.1 million, and the creditors are concerned about the potential recovery of the debt. The exchange froze withdrawals in July 2022 after it was hit by market-wide contagion following the collapse of the Terra ecosystem and subsequent crypto lenders. Zipmex lost $48 million after lending it to Babel Finance, with an additional $5 million in exposure to bankrupt Celsius Network.

To fill the void left by its losses, Zipmex exchange applied for creditor protection, and reportedly agreed to a $100 million deal with V Ventures, a Thailand-based venture capital firm. However, the deal stalled after V Ventures missed one of its scheduled payments in March.

Zipmex CEO Marcus Lim has denied the inaccuracies in the information reported by Bloomberg. The troubled exchange is facing a challenging situation, and its creditors are seeking a fair recovery of their debts.