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Beleaguered South Asian cryptocurrency exchange Zipmex has filed for bankruptcy protection against its Singaporean creditors after it had suspended withdrawals for all of its users, citing a "combination of circumstances" beyond its control.
The Thailand-based cryptocurrency exchange said in a blog post that moratorium will help to protect Zipmex "against third party actions, claims, and proceedings." The company added:
"It is important to note that a moratorium is not a liquidation of any company, and there is no significant status change from our last update."
Zipmex revealed that on July 2022, its solicitors in Singapore, Morgan Lewis Stamford, filed five applications under Section 64 of Singapore’s Insolvency, Restructuring and Dissolution Act 2018 on behalf of several of the Zipmex Group’s entities. With the filing, the exchange wants to restrain the commencement against the companies "for a period of up to six months."
Earlier in July, Zipmex said that a "series of black swan events" resulted in financial difficulties of its partners, without naming them. The move came after Celsius Network and Voyager Digital made the same steps before filing for bankruptcy.
