Crypto exchange Zipmex files for bankruptcy
Zipmex is seeking bankruptcy protection in Singapore, the Thailand-based cryptocurrency exchange said on Wednesday (July 27).
“This helps protect Zipmex from third-party actions, claims and processes while it is active, and allows the team to focus all of our efforts on resolving the liquidity situation, without having to worry about defending potential claims or adverse actions while we do it. so,” the company said in a message to its users.
Zipmex added that this does not mean liquidation of the company, whose status has not changed since the last update. It plans to continue operating its trading wallet, NFT platform and other offerings, with no planned service interruptions.
Related: Thailand’s Zipmex Exchange Halts Withdrawals
According to Zipmex, the company’s lawyers filed five applications under Singapore’s Insolvency, Restructuring and Dissolution Act on behalf of several of the Zipmex entities, seeking “global moratoriums to prohibit and limit the initiation or continuation of proceedings against the companies for a period of up to six months.”
Zipmex, which also trades in Indonesia, Australia and Singapore, halted customer withdrawals last week, citing “circumstances beyond our control, including volatile market conditions, and the resulting financial difficulties of our key business partners”.
Among the problems: Babel Finance’s default on a $100 million loan. Zipmex said the moratoriums would give it time to explore options to manage its liquidity situation, including the pursuit of recovery against Babel.
As PYMNTS noted last week, Zipmex is the first exchange to be affected by the ripples from the $48 billion collapse of the Terra/LUNA stablecoin in May. The first and biggest victim was the crypto hedge fund Three Arrows Capital, whose insolvency led to a large part of the fallout.
The spate of bankruptcies and near misses has sparked enough fear and distrust in the industry that it is believed to have helped push bitcoin below $20,000 for several weeks.
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