The cryptocurrency exchange firm in South Asia called Zipmex has recently gone for bankruptcy protection filing. They filed for it in Singapore and have become the latest impact takers of the low fluctuations of the digital currency market. The havoc of the current crypto industry has affected them severely. For a while, Zipmex also freezes the withdrawals to cope with the changes happening in the market. They switched them off on 20th July. However, last week just after one day they restarted their withdrawal feature. They stated to the media and their users that they were working for resolving the $53 million exposure which was done to Babel Finance and Celsius.
The solicitors of Zimpmex have given 5 applications on the day of 22nd July. The applications were aimed at finding moratoriums to stop any legal proceedings upon them for a duration of the next 6 months. This was stated on Wednesday, that the firm should be forbidden from any legal actions for 6 months. As per the regulations of Singapore, if any company files such grants then they get an automatic moratorium for one month or in other cases till when the Singapore court states their processing decision upon consideration of the application. The decision is taken by the process which gets completed earlier.
Zipmex has its business exposure to Thailand, Singapore, Australia, and Indonesia. They are the newest name on the list for the crypto firms which have gone into management and functioning difficulty due to the current scenario followed by fast selling into the market. This begin in May when the two prominent tokens collapsed simultaneously called Luna and TerraUSD. The securities and exchange commission of Thailand also stated on Monday that they are taking action along with law enforcement in the losses of the public associated with Zipmex when the company stopped withdrawals. The crypto industry of Singapore has also got hit by the collapse of Three Arrows Capital which is a huge crypto fund.
