The company revealed that it was facing challenges beyond its control after withdrawal was paused on its platform on July 20.
Zipmex, a Thailand-based crypto exchange, has in a recent update disclosed to have filed for bankruptcy, seeking protection against legal actions by creditors. The company revealed that it was facing challenges beyond its control after withdrawal was paused on its platform on July 20. This caused an alarm as it was reported that Zipmex could be in trouble.
However, its CEO and co-founder Marcus Lim dismissed it as rumors. A week after the rumors, the company submitted a moratorium application in Singapore for its entities for protection from continuation or commencement of proceedings by claimants for one month or until a decision is made on the application by the court.
“This helps protect Zipmex against third-party actions, claims, and proceedings while it is active, and enables the team to focus all our efforts on resolving the liquidity situation, without having to worry about defending potential claims or adverse actions while we are doing so,” according to Zipmex.
Zipmex further stated that it seeks to resolve its liquidity issue, secure new investment opportunities for its operation, and create a restructuring plan. According to them, the company is in advanced negotiations with potential investors to facilitate its operations.
The company also mentioned that it has resumed certain activities on its platform. By the time of issuing the statement, its trading wallets and NFT platform were fully active. The statement also clarifies that withdrawal from its Z wallets is still frozen.
Zipmex’s financial woes have been linked to the collapse of the Terra ecosystem and hedge fund Three Arrows Capital. Things became worse when the major crypto prices took a huge nosedive. In the past 3 months, several crypto trading platforms including Voyager Digital, CoinFLEX, Babel Finance as well as crypto lending platform Celcius have suspended withdrawals.
The Zipmex struggle is also linked to that of Babel Finance and Celcius. The Thai Based Crypto exchange has disclosed that it has $48 million exposure to Babel Finance and $5 million to Celcius. Celcius has filed for bankruptcy.
As it stands, a case conference has been fixed for application on July 29, 2022, at 4 pm.
“Any creditor(s) who wish to attend the case conference is to inform our solicitors, Morgan Lewis Stamford LLC, before 6 pm on 28 July 2022 (10 am GMT, 28 July 2022),” wrote Zipmex.
Excellent John K. Kumi is a cryptocurrency and fintech enthusiast, operations manager of a fintech platform, writer, researcher, and a huge fan of creative writing. With an Economics background, he finds much interest in the invisible factors that causes price change in anything measured with valuation. He has been in the crypto/blockchain space in the last five (5) years. He mostly watches football highlights and movies in his free time.
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