Bloomberg reported that Singapore’s High Court granted Asian crypto exchange Zipmex Pte, Zipmex more than three months of creditor protection until December 2.
The company filed for bankruptcy protection in July and capped withdrawals last month after exposure to troubled crypto lender Babel Finance hurt its finances.
Some shareholders and potential investors in Zipmex are urging CEO Marcus Lim to step down over management decisions that led to a severe cash crunch, Bloomberg reported citing people familiar with the matter.
One significant Zipmex shareholder has written to Lim asking him to resign, citing a loss of trust among partners and the fallout from the Babel exposure, the report mentioned.
“The internal matter of senior executive positions (including responses to this letter) is being handled by the board and shareholders,” Lim said in a statement to Bloomberg.
“We will deal with this privately and after resolving the operational issues,” Lim added that the management team is focused on executing the company’s recovery plan.
As the Asian crypto exchange allowed clients to withdraw some tokens, complete easing would require a capital infusion. Potential investors for proposed fundraising want Lim to resign before injecting capital.