A CRYPTOCURRENCY EXCHANGE FROM SINGAPORE HAS ASKED FOR PROTECTION IN CONNECTION WITH BANKRUPTCY

The Zipmex crypto exchange declared its insolvency to the Singapore court. This was done immediately on behalf of five companies forming the structure of the exchange. Morgan Lewis Stamford, representing the interests of the exchange, is counting on the possibility of establishing a six-month moratorium allowing the exchange to develop a restructuring program.

According to sources, the liquidity problem forced Zipmex to announce the suspension of payments on July 20. The company referred to market instability and financial difficulties on the part of key partners. And although the function of depositing and withdrawing funds was resumed literally the next day, it became impossible to trade through the platform.

The company blames two financial corporations that worked with cryptocurrency for its troubles. One of them, Babel Finance, is located in Hong Kong. It owes the exchange $48 million. The DeFi-platform Celsius Network, which previously declared bankruptcy in a New York court, owes the Singapore exchange $ 5 million.

It is assumed that the Babel Finance exchange will recover the debt through the court, and the Celsius Network will write off the debt as losses.

It was also reported that on June 24, the Singapore crypto exchange received an offer from an investor about the possibility of saving the business from bankruptcy. Representatives of Zipmex have not yet disclosed his name, as they do not report whether the investment will only be an investment in the development of the platform or its full redemption is expected.

Forbes reports that after the exchange suspended the withdrawal of funds, the Securities and Exchange Commission of Thailand became interested in its activities. Last Monday, the Thai regulator announced that it plans to study the possible losses that this brought to investors.

It is already known that due to the inability to withdraw exchange funds, the Vauld platform also appealed to the Singapore court. 

Its representatives also asked the judicial authorities to impose a moratorium for a period of six months necessary to search for restructuring options. The debt of the landing platform to creditors amounted to $ 402 million.