in distress bitcoin and cryptocurrency exchange Zipmex has filed an application seeking bankruptcy protection in Singapore amid the threat of legal action from creditors.
On July 22, Zipmex attorneys, Morgan Lewis Stamford, filed five applications on behalf of the firm’s different entities seeking a moratorium on legal action of up to six months.
Cryptocurrency Exchange Zipmex’s Lawyers Made a New Statement
Zipmex said in a statement Wednesday:
“This will help protect Zipmex against third-party actions, claims and transactions for as long as it is active, and will allow our team to focus all our efforts on resolving the liquidity situation without having to worry about defending potential claims or adverse actions while we do this.”
Under Singaporean law, such an application automatically grants a grace period of 30 days or until the Singapore Court makes a decision on the application, whichever is earlier.
Among the five applicants are Zipmex Asia Pte Ltd, Zipmex Pte Ltd, Zipmex Company Ltd. (founded in Thailand), PT Zipmex Exchange Indonesia and Zipmex Australia Pty Ltd. exists.
Zipmex was hit by the downturn in the cryptocurrency market in early June due to its lending to Babel Finance. Babel froze withdrawals in mid-June due to liquidity pressures on hyper-leveraged crypto firms like Three Arrows Capital and Celsius.
Earlier this week, Zipmex said it had received an investment proposal from a relevant entity and the terms presented in the memorandum of understanding allowed the talks to begin due diligence.
*Not investment advice.