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Zipmex Files for Bankruptcy Protection To Focus on Solving Liquidity Issues

Written by: Delma Wilson

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Delma Wilson

Delma is a B2B Content Marketer, Consultant, Blogger in the field of Blockchain, and Cryptocurrency. In her spare time, she loves to blog, play badminton and watch out ted talks. She likes pets and shares her free time with NGO.

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Jul 29, 2022

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One of the companies that are facing a financial crisis nowadays is Zipmex.The company will now focus on getting back on track and resolving its liquidity issues. 

To do this, Zipmex finally decided to file for Bankruptcy Protection in Singapore and has asked for moratorium relief for 5 of its associated firms.

On behalf of Zipmex Group’s associates, 5 applications were filed by its solicitors under Section 64 of Singapore’s Insolvency, Restructuring, and Dissolution Act of 2018.

To avoid any inconvenience to users, Zipmex will continue to offer its Trade Wallet services, NFT platform, and all other products and services. The exchange’s decision to file for bankruptcy is to resolve liquidity problems and re-enable its Z wallet and the moratorium.

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. 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.“, said an official from Zipmex. 

The 5 companies that are seeking relief are Zipmex Asia Pte Ltd, Thailand-based Zipmex Company Limited,  Zipmex Pte Ltd, PT Zipmex Exchange Indonesia, and Zipmex Australia Pty Ltd. As per Singapore’s law, an automatic moratorium is granted to these companies for 30 days or until further notice from the court. 

Difficult Phase for Crypto Firms 

The market crunch proved to be extremely challenging for some crypto companies and several faced liquidity issues leading to a suspension of withdrawals, and eventually, bankruptcy. 

The biggest victims of the market crunch were Three Arrows Capital, Celsius Network and Terraform Labs, which continues to face severe legal issues. 

Crypto firms now plan to take a more cautious approach to their operations. These issues have risen before, but amid the changing scenario, it seems to be more challenging than ever. 

A Peek Into The Future 

The market crunch has certainly dampened spirits, but the overall sentiment remains one of perseverance, and institutional and retail investors remain positive about the future. 

The short-term difficulties seem to be mainly due to the new rules and regulations, as well as the sudden crack-down by the SEC. 

It is predicted that the crypto rise will be as glorious as the rise of the internet in the 1990s. It is anticipated that there would be 1 billion crypto users by 2030.

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Delma Wilson

Delma is a B2B Content Marketer, Consultant, Blogger in the field of Blockchain, and Cryptocurrency. In her spare time, she loves to blog, play badminton and watch out ted talks. She likes pets and shares her free time with NGO.

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