Crypto Lending Woes Continue as Zipmex Files for ‘Bankruptcy Protection’

August 02, 2022, 10:05 AM AEST - 1 week ago

Singapore-based multinational crypto exchange Zipmex has revealed it is seeking bankruptcy protection against legal action from creditors.

The embattled company, which froze user withdrawals last month, has submitted moratorium applications relating to its five component entities, including Zipmex Australia:

Zipmex Buys Time ‘For Up to Six Months’

The latest legal move automatically grants Zipmex protection from the continuation or commencement of proceedings by claimants for 30 days, or until after a Singapore court makes a decision on the applications – whichever comes first.

According to Zipmex’s legal team, however, its five applications filed on July 22 seek moratoriums to prohibit legal proceedings against the company for up to six months.

After initially pausing all trading and withdrawals on July 20, Zipmex has since resumed withdrawals from its trade wallet but its popular Z-Wallet remains disabled pending the outcome of discussions with partners.

Zipmex plans to use the time allowed by bankruptcy protection to resolve its liquidity issues, create a restructuring plan, and secure new investments to support its operations going forward. It also claims to have received “formal, registered interest” from potential investors to help shore up its finances.

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