LONDON (Bywire News) - A growing trend that has emerged out of the downturn in the price of crypto has been the number of exchanges and firms going bankrupt. The latest to join that list is Southeast Asia-focused crypto exchange Zipmex which filed for bankruptcy protection in Singapore.
Zipmex resumed withdrawals for users last week only a day after suspending them as they claimed they were working on its $53 million exposure to lenders Babel Finance and Celsius.
Zipmex’s solicitors had submitted five applications seeking moratoriums to prohibit legal proceedings for up to six months said the exchange on Wednesday.
Singapore law states that a filing of this suit grants an automatic moratorium for 30 days or until a Singapore Court makes a decision on the application. Whichever comes first.
Zipmex, which has operations in Singapore, Thailand, Indonesia and Australia is the latest of the large crypto players to face difficulties in a major period of turmoil which started with the collapse of the Terra ecosystem in May.
Thailand’s SEC said on Monday that they were working with authorities to look into the losses among the public after Zipmex suspended withdrawals.
Singapore’s crypto sector has also taken a major hit with the collapse of crypto fund Three Arrows Capital.
(Writing by Samba Jallow, editing by Tom Cropper and Klaudia Fior)