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Zipmex, the crypto platform, has filed for bankruptcy protection in Singapore.

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Zipmex is a cryptocurrency exchange platform based out of Singapore. It was founded in 2018. Zipmex runs its operation in Australia, Indonesia, Singapore, and Thailand. It had achieved $52 million in investments. However, the platform has become the newest prey of digital currencies’ global decline. The company had to file for bankruptcy protection in Singapore.

It had suspended withdrawal on July 20 but started it back the next day. They are planning how to address their $53 million exposure to Celsius and Babel Finance, the two crypto lenders. $5 million is owed by the Celsius Network and $48 million by Babel Finance, the firm which has its headquarters in Hong Kong.

In July 2022, Zipmex’s lawyers five applications to seek moratoriums. These moratoriums will stall all lawsuits against them for 6 months. According to the law in Singapore, such filings automatically allow them a moratorium till the court comes to a decision or 30 days, whichever comes earlier.

This duration will give Zipmex time to think about restructuring, examine its options to sort out the liquidity crisis and get hold of other investments needed to keep its operations running.

In May, the collapse of the paired tokens TerraUSD and Luna started a sudden sell-off in markets. As a result, many crypto players started facing problems. Unfortunately, Zipmex has now become one of them.

Thailand’s Securities and Exchange Commission has declared that they have joined hands with law enforcement to check people’s possible losses when Zipmex stopped withdrawals for the short time.

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