Bitcoin Bear Market Claims Another Crypto Firm As Zipmex Files For Bankruptcy

Thailand-based cryptocurrency exchange Zipmex is seeking bankruptcy protection against lawsuits from creditors, according to a company update on Wednesday.

The company, which froze user withdrawals last week filed moratorium requests on July 22 in Singapore for its various entities. These are Zipmex Asia Pte Ltd, Zipmex Pte Ltd, Zipmex Company Limited, PT Zipmex Exchange Indonesia and Zipmex Australia Pty Ltd.

Under national laws, this ruling will automatically grant Zipmex protection from the plaintiffs suing or commencing proceedings for 30 days, or until a court in Singapore makes a decision on the claims, whichever first therapy.

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“This helps protect Zipmex from third party actions, claims and proceedings while it is active.[…] without having to worry about defending potential claims or sued actions while we do so,” the company Explain in a report.

After initially suspending all trading and withdrawals on its exchange on July 20, Zipmex has resumed some activity on its platform. The company noted yesterday that its trade wallet and NFT platform, for example, are now being developed and no further discontinuation of these products is planned. However, withdrawals of Z Walletswhich are the main wallets in which customer funds are stored on Zipmex, remain frozen.

The company’s problems stemming from “crypto contagion” following the collapse of Terra and crypto hedge fund Three Arrows Capital, coupled with depressed crypto prices amid a deepening bear market. May, several crypto trading platforms froze user withdrawals, including CoinFLEX, digital travel, Finances of Babeland crypto lending company Celsius.

Capital of the Three Arrows, Travelerand Celsius each filed for bankruptcy.

Zipmex said during the initial suspension of withdrawals that it encountered financial problems with “key business partners”, which the company later revealed to be a $48 million and $5 million exposure to Babel Finance and Celsius, respectively.

The company said yesterday that it plans to use the time allowed by bankruptcy protection to resolve its liquidity problems, create a restructuring plan and secure new investments to support its operations in the future. The firm claims to have already received “formal and registered interestto potential investors to present its finances.

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