Crypto Platform Zipmex Files For Bankruptcy Protection In Singapore

(CTN News) – Zipmex, a cryptocurrency exchange focused on Southeast Asia, filed for bankruptcy protection in Singapore, becoming the latest victim of the global downturn.

Zipmex resumed withdrawals last week after suspending them on July 20, saying it was working to resolve its $53 million exposure to crypto lenders Babel Finance and Celsius.

On July 22, Zipmex’s solicitors filed five applications seeking moratoriums to prohibit legal proceedings against Zipmex for a period of six months.

Such a filing in Singapore grants companies an automatic moratorium for 30 days, or until an application is decided by a Singapore Court.

Following a sharp sell off in markets that started in May with the collapse of two paired tokens, Luna and TerraUSD, Zipmex, which operates in Singapore, Thailand, Indonesia, and Australia, has run into problems.

Following Zipmex’s temporary suspension of withdrawals, Thailand’s Securities and Exchange Commission said it was working with law enforcement to investigate potential losses among the public.

With Three Arrows Capital’s recent collapse, Singapore’s ambitious cryptocurrency sector, by some measures Asia-Pacific’s largest, has also been shaken.

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