Crypto Exchange Zipmex Files for Bankruptcy Protection in Singapore

Zipmex, a cryptocurrency exchange focused on Southeast Asia, has filed for bankruptcy Bankruptcy Bankruptcy or insolvency constitutes a legal term and refers to being unable to repay debts. A business and a person can declare bankruptcy. When a person or company claims bankruptcy, it is described as a voluntary bankruptcy, and when your debtors force you into bankruptcy, it is referred to as involuntary. A voluntary bankruptcy occurs when the debtor or borrower, the party that owes the money files with the courts. Involuntary bankruptcy happens when your credits file a petition with the co Bankruptcy or insolvency constitutes a legal term and refers to being unable to repay debts. A business and a person can declare bankruptcy. When a person or company claims bankruptcy, it is described as a voluntary bankruptcy, and when your debtors force you into bankruptcy, it is referred to as involuntary. A voluntary bankruptcy occurs when the debtor or borrower, the party that owes the money files with the courts. Involuntary bankruptcy happens when your credits file a petition with the co Read this Term protection in Singapore, seeking protection against legal threats from creditors.

The exchange approached the Singapore court for bankruptcy protection on July 22, only a couple of days after it suspended withdrawals from its platforms.

“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,” the crypto exchange stated.

The solicitors of the exchange submitted five applications, seeking moratorium relief, each for a different Zipmex entity. While two of the entities are incorporated in Singapore, the rest are from Australia, Indonesia and Thailand.

The filing has automatically granted the exchange a 30-day moratorium period or until the Singapore court decides on the application.

“It is important to note that a moratorium is not a liquidation of any company,” the exchange added.

Another Collapsing Crypto Exchange?

Zipmex is the latest troubling cryptocurrency platform after Celsius, Voyager Digital and Three Arrows Capital. Another troubled crypto startup, Vauld filed for protection against its Singaporean creditors.

While suspending withdrawals, Zipmex cited a combination of circumstances including market volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term and financial difficulties of its business partners. Now the troubles of the exchange look to be grimmer.

Earlier, Coinbase was interested in acquiring Zipmex, but the American exchange ended up only investing in the Southeast Asian counterpart. The investment came as a part of a Series B+ funding round of the crypto exchange that valued it at $400 million.

Among all the markets it operates, Zipmex’s user base is concentrated in Thailand. The Thai Securities and Exchange Commission (SEC) is also working with law enforcement to evaluate the losses to the customers after Zipmex suspended withdrawals.