FinTelegram recently reported that Zipmex froze client withdrawals amid the expanding crypto crises following the collapse of Terra/Luna, Three Arrows Capital (3AC), Celsius Network, and Voyager Digital. Singapore-based Zipmex said it had filed applications under Section 64 of Singapore’s Insolvency, Restructuring and Dissolution Act 2018 for Zipmex Asia Pte. Ltd., Zipmex Pte. Ltd., Zipmex Company Ltd., PT Zipmex Exchange Indonesia, and Zipmex Australia Pty. Ltd. The crypto exchange ran into troubles with its exposure to crypto lender Babel Finance, which froze withdrawals in mid-June.
Zipmex‘s solicitors are seeking moratoriums to prohibit legal proceedings against Zipmex for up to six months, the cryptocurrency exchange said on Jul 27. Under Singapore law, such a filing grants companies an automatic moratorium for 30 days or until a Singapore Court makes a decision on the application, whichever is earlier.
On Twitter, Zipmex had given hope in the last few days that it could succeed in attracting investors and fresh money.
“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,” Zipmex said.
