The most recent cryptocurrency platform to seek protection from bankruptcy
The cryptocurrency exchange with a concentration on Southeast Asia said that it had sought bankruptcy protection in Singapore, making it the newest casualty of the global decline in digital currencies.
The newest casualty of the global decline in digital currencies is the cryptocurrency exchange Zipmex, which has its concentration on Southeast Asia. Zipmex said that it had filed for bankruptcy protection in Singapore.
The Singapore-based Zipmex company claimed it was attempting to handle its $53 million exposure to cryptocurrency lenders Babel Finance and Celsius when it resumed withdrawals last week, a day after it had suspended them on July 20.
The cryptocurrency exchange stated on Wednesday that five applications for moratoriums to stop legal actions against Zipmex for up to six months were lodged on July 22 by Zipmex’s attorneys.
According to Singaporean law, such a filing gives businesses a 30-day automatic moratorium, or until a Singapore Court rules on the case, whichever comes first.
According to its website, Zipmex operates in Singapore, Thailand, Indonesia, and Australia. Zipmex is the most recent in a long line of cryptocurrency players to experience problems as a result of a strong market sell-off that began in May with the collapse of two linked currencies, Luna and TerraUSD.
Following Zipmex’s temporary suspension of withdrawals, Thailand’s Securities and Exchange Commission declared on Monday that it was collaborating with law enforcement to investigate any potential damages suffered by the general public.
The recent failure of cryptocurrency fund Three Arrows Capital has also rattled Singapore’s ambitious cryptocurrency industry, which is by some estimations the largest in Asia-Pacific.