Zipmex Files for Bankruptcy Protection in Singapore

Beleaguered crypto exchange Zipmex filed applications in Singapore seeking bankruptcy protection amid the threat of legal action from creditors.

• Zipmex's solicitors, Morgan Lewis Stamford, filed five applications on July 22 on behalf of the firm's different entities seeking moratoriums on legal proceedings for up to six months.
• "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," Zipmex said.
• Under Singapore law, such a filing automatically grants respite for either 30 days or until a Singapore court makes a decision on the application, whichever is earlier.
• The five entities are Zipmex Asia Pte. Ltd., Zipmex Pte. Ltd., Zipmex Company Ltd. (incorporated in Thailand), PT Zipmex Exchange Indonesia and Zipmex Australia Pty. Ltd.
• Zipmex was caught in the headlights of the downturn in the crypto market in early June with its exposure to crypto lender Babel Finance. Babel froze withdrawals in mid-June amid liquidity pressures relating to overleveraged crypto firms such as Three Arrows Capital and Celsius Network.
• Earlier this week, Zipmex said it had received an investment offer from an interested party, with terms offered in a memorandum of understanding allowing the party to commence due diligence.

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