Recently, Zipmex filed for bankruptcy protection in Singapore. The company has requested a moratorium on debt payments for five companies. The reason given is that Zipmex wants to focus on solving its liquidity problems.
Cryptocurrency exchange Zipmex is the next crypto company to face financial strains. Accordingly, the company has filed for bankruptcy protection in Singapore.
The exchange announces that its attorneys filed five applications on July 22 under Section 64 of Singapore’s Dissolution, Restructuring and Dissolution Act 2018 on behalf of several of the Zipmex Group’s legal entities.
The exchange will continue to operate its Commercial Wallet, NFT platform, and other products. So users will not experience any interruption in their service. This decision by the exchange is part of an effort to resolve liquidity issues and reactivate its Z wallet. The notice says about the application as follows:
“This helps protect Zipmex against third party actions, claims, and proceedings while it is active, and enables the team to focus all our efforts on resolving the liquidity situation, without having to worry about defending potential claims or adverse actions while we are doing so. It is important to note that a moratorium is not a liquidation of any company, and there is no significant status change from our last update.”
Companies seeking protection are based in Thailand, Indonesia, and Australia. Singapore law stipulates that these companies can suspend automatic repayment for 30 days or until a court decides.
The bear market has not treated crypto companies kindly, with some withdrawals suspended, facing liquidity problems, or filing for bankruptcy in the most extreme cases. Celsius Network (CEL) and Three Arrows Capital are two of the biggest victims of the crypto winter – not to mention Terraform Labs, which is facing serious legal troubles.
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