Singapore High Court Grants Zipmex 3 Months of Protection

Zipmex Seeks Meeting Thailand SEC Over Recovery Plan
  • Due to cash flow problems, the company temporarily halted withdrawals.
  • High Court’s Justice Aedit Abdullah has put a hold on any further legal action.

Several cryptocurrency ventures failed because of the weak market and the demise of Terra. Even while some investors had begun leaving the sector when Bitcoin’s price dropped below $20,000, the spectacular failure of crypto lending businesses frightened off others. After suddenly suspending withdrawals in July, the Asian cryptocurrency exchange Zipmex seemed to be in danger. The Singapore High Court has now given the company three months of creditor protection, easing its financial troubles.

In the wake of its associations with Babel Finance and Celsius, Zipmex became one of the most severely impacted cryptocurrency exchanges. Due to cash flow problems, the company temporarily halted withdrawals and desperately sought bankruptcy protection. The Singapore High Court’s Justice Aedit Abdullah has put a hold on any further legal action against five Zipmex subsidiaries until December 2, 2022. This encompasses not just Zipmex, but also Zipmex Asia, Zipmex Thailand, Zipmex Indonesia, and Zipmex Australia.

Investors Worry Over Funds Access

This would allow the aforementioned organizations to avoid legal action from their debtors. Notably, the exchange filed for bankruptcy protection from its creditors for a period of five months. Zipmex, meantime, wants to come up with a strategy for reorganization.

Such problems seem to be ones that Singapore has been facing of late. Earlier this month, a judge granted a similar agreement to Vauld, protecting the company from creditors for a term of three months.

Zipmex resumed some Bitcoin and Ethereum withdrawals this past week. Between August 11 and August 16, Z wallet owners could access their funds. Withdrawals for cryptocurrencies like Solana [SOL], XRP, and Cardano [ADA] were also possible.

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A devoted content writer having 3 years of crypto trading experience. Loves cooking and swimming. Stays up to date with the latest developments on blockchain technology.