Zipmex Files For Bankruptcy After Halting Withdrawals Last Week

Zipmex Files For Bankruptcy After Halting Withdrawals Last Week
  • Applications for moratoriums were filed in Singapore on July 22 by the firm.
  • On July 20, Zipmex temporarily halted all trading and withdrawals on its exchange.

According to a corporate update released on Wednesday, Zipmex, a cryptocurrency exchange located in Thailand, has filed for bankruptcy protection against creditors’ legal action. Applications for moratoriums were filed in Singapore on July 22 by the business that stopped customer withdrawals last week. Among these companies are Zipmex Asia Pte Ltd, Zipmex Pte Ltd, Zipmex Company Limited, and Zipmex Exchange Indonesia.

Yet Another Firm Files For Bankruptcy

For a period of 30 days or until a Singapore court rules on the petitions, the move will automatically offer Zipmex protection from the continuation or initiation of litigation by claimants.

Zipmex noted in a statement that:

“This helps protect Zipmex against third party actions, claims, and proceedings while it is active[…] without having to worry about defending potential claims or adverse actions while we are doing so.”

On July 20, Zipmex temporarily halted all trading and withdrawals on its exchange but has subsequently restored some of those activities. There will be no further downtime for the business’s trading wallet or NFT platform, according to a statement issued by the company only a day earlier. Withdrawals from Zipmex’s Z wallets, the primary wallets where customers’ money is kept, are still pending.

The company’s problems stem from the crypto outbreak that followed Terra and crypto hedge fund Three Arrows Capital’s bankruptcy, as well as poor crypto prices in a widening bear market. Terra and Three Arrows Capital also collapsed. A number of crypto trading platforms, including CoinFLEX, Voyager Digital, Babel Finance and Celsius, have stopped users from withdrawing their funds.

When Zipmex first halted withdrawals, it claimed to have run into financial difficulties with “key business partners,” but it subsequently disclosed that it had $48 million in exposure to Babel Finance and $5 million in exposure to Celsius instead.

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Content writer by profession. A crypto lover and has passion for writing. Follows the developments of digital currency right from its launch, years ago.