Crypto Exchange Zipmex Seeks Bankruptcy Protection in Singapore as Crypto Crisis Spreads

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Zipmex has become the latest victim of the ongoing crypto crash after encountering liquidity issues which it attributes to struggling crypto lenders Babel Finance and Celsius Network.

The Singapore-based crypto exchange said on Wednesday that it had filed moratorium requests in the city-state for five business entities. The moratoriums will shield Zipmex from any claims or legal proceedings for up to six months, according to a company statement.

The move would give Zipmex “the breathing space and time it needs” to explore options to resolve the liquidity crunch, formulate a restructuring plan and secure additional investment to continue operations, it said. said the company. It has already attracted interest from several potential investors, Zipmex added, including a signed memorandum of understanding with an undisclosed party that could inject what it described as “a large amount of fresh capital” into the company. exchange.

Zipmex owes Hong Kong-based crypto lender Babel Finance a net $48 million and another $5 million to Celsius Network, the lender that filed for bankruptcy in New York on July 21. Zipmex said it had decided to start legal action against Babel Finance, but could potentially write off the Celsius Network loss from its own balance sheet. Zipmex’s exposure to both companies forced its trading platform to temporarily suspend withdrawals last Thursday.

Meanwhile, Zipmex faces a potential investigation from Thailand’s Securities and Exchange Commission. The financial regulator said on Monday it was reviewing potential losses for investors following the suspension of the Zipmex withdrawal.

Founded in 2018, Zipmex offers crypto trading and investment services in Thailand, Indonesia, Singapore, and Australia. The company had managed to attract a total of $52 million in investment, including B Capital Group, the investment firm led by billionaire Facebook co-founder Eduardo Saverin, Bain Capital veteran Rajarshi Ganguly and legendary investor Howard Morgan. . On Friday, the exchange processed nearly $800,000 in spot trades over a 24-hour period, according to data from crypto tracker Coingecko.

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