Singapore-based Zipmex has become the latest crypto crash casualty, as it filed for bankruptcy protection in the city-state.
Zipmex resumed withdrawals a day after suspending them on July 20 and said it was working to address its exposure of $53 million to crypto lenders Babel Finance and also-bankrupt Celsius Network.
Its solicitors submitted five applications on July 22 seeking moratoriums to prohibit legal proceedings against Zipmex for up to six months, the cryptocurrency exchange said.
Under Singapore law, such a filing grants companies an automatic moratorium for 30 days, or until a Singapore Court makes a decision on the application, whichever is earlier.
“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,” Zipmex said in a statement.
Zipmex, which operates in Singapore, Thailand, Indonesia and Australia, is the latest in a string of crypto crash casualties that have run into difficulties following a sharp sell off in markets that started in May with the collapse of Luna and TerraUSD.
Thailand’s Securities and Exchange Commission said on Monday it was working with law enforcement to look into potential losses among the public after Zipmex temporarily suspended withdrawals.
Singapore’s ambitious cryptocurrency sector, by some measures Asia-Pacific’s largest, has also been shaken by the recent collapse of crypto fund Three Arrows Capital.
- Reuters, with additional editing by George Russell
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