Zipmex Files for Debt Relief Amid Ongoing Crypto Crash

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Zipmex has filed moratorium demands in Singapore, barring creditors from making claims as it tries to address liquidity issues.

Today, the crypto exchange will hold a case conference webinar open to its creditors via zoom following its announcement earlier in the week.

He said on July 22, Zipmex lawyers Morgan Lewis Stamford LLC filed five applications under Section 64 of the Singapore Insolvency, Restructuring and Dissolution Act 2018 on behalf of several entities of the Zipmex group.

Entities include Zipmex Australia Pty Ltd, Zipmex Asia Pte Ltd, Zipmex Pte Ltd, Zipmex Company Limited (incorporated in Thailand) and PT Zipmex Exchange Indonesia.

“We are calling for global moratoriums to prohibit and restrict the initiation or continuation of lawsuits against companies for a period of up to six months,” said a statement released by the company.

“Moratoriums would give the Zipmex Group the breathing space and time it needs to explore options to resolve the liquidity situation (including to pursue the turnaround against Babel Finance), and to formulate a restructuring plan and secure additional investments to ensure Zipmex Group operations move forward.”

The announcement follows its decision to halt client withdrawals, making it the latest crypto exchange to be burned by the bear market and caught in a series of defaults.

“Due to current macro conditions and recent fallout in the crypto space from recent events involving Celsius Network, 3AC, Babel Finance and others, Zipmex’s CeFi product has recently been exposed to defaults by two of our borrowers. institutional”

Zipmex said as of July 21 that Babel Finance owes it $48 million.

Babel suffered from liquidity problems and shortages of funds earlier in the month, which led to the suspension of withdrawals.

Zipmex also said the bankrupt Celsius Network owed it $5 million.

According to data collected by CoinMarketCap, the overall crypto market has declined by 9.37% over the past seven days.

Bitcoin also saw a decline of 5.7% and Ethereum fell 10%.

ETF Securities: Crypto Weekly Report revealed that in the United States, the Securities and Exchanges Commission (SEC) has been investigating insider trading within crypto exchanges.

A former Coinbase product manager Ishan Wahi and two others Nikhil Wahi and Sameer Ramani have been arrested for wire fraud in the first insider trading case involving crypto-assets.

Following these changes, the SEC has listed nine tokens as securities, the assets are: AMP, RLY, DDX, XYO, RGT, LCX, POWR, DFX, KROM.

As the crypto contagion consumes some lenders, others are rushing to join the space.

“BNP Paribas Seeks to Launch Crypto Custody Platform, Fidelity Sees Strong Demand for 401K BTC Funds, Crypto.com Gains Regulatory Approval from Cyprus and Italy, Gemini Receives Bank VA Service Provider Central Ireland,” the report said.

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