Zipmex has filed for bankruptcy protection in Singapore –

• Zipmex has filed for bankruptcy and wants moratorium relief.
• Zipmex wants to solve its financial issues.

Zipmex, a southeast Asia-focused cryptocurrency exchange has filed for bankruptcy protection in Singapore. The company wants to fight against financial stress and solve financial issues.

On July 22, the lawyers of the company filed five applications in the court under Section 64 of Singapore’s bankruptcy, Restructuring and Dissolution Act 2018 representing many of Zipmex Group’s organizations.

The service of the company will run smoothly as Trade Wallet, NFT platform, and other products will be continuously available to not create any trouble for the users.

The platform has decided to file for bankruptcy is an attempt for solving the financial problems and re-activate its Z wallet- that’s why they also want a moratorium.

The moratorium does not indicate liquidation of any company

The statement about the filing states that:

“ The step will help in protecting the company from any steps, claims, and move taken by any third force and make the team of the company focus on solving the financial issues without stressing about justifying the claims or steps we are taking. It is notable that a moratorium does not denote any destruction of the company and also there is no change from our last update.”

Along with Zipmex  Pte Ltd, the companies which need a moratorium are Zipmex Asia Pte Ltd, Thailand-based Zipmex Company Limited, PT ZZipmex Exchange Indonesia, and Zipmex Australia Pty Ltd.

According to the law of Singapore, when an application is filed for a moratorium an automatic stay for 30 days or till the court gives the verdict is raised.  

ALSO READ – US Lawmakers’ new Legislation—Seeking Tax Exemption on Small Crypto Transaction

Many cryptocurrency companies have filed for bankruptcy

The downfall in the crypto market has raised numerous problems for the crypto companies such as freezing the withdrawals, financial problems, and bankruptcy. Companies like Celsius network, Three Arrows Capital, and Vauld has filed for bankruptcy. The crypto fintech firm Terraform Labs is also facing many lawful difficulties.

Due to this downfall in the crypto industry, many companies are being careful as the cascading effect has affected many interlinked companies. It is not the first time when this industry is facing such problems but the current situation is very unpleasant for the market.

The declining market has flushed out the hope of reaching new highs in the upcoming days. The Boston Consulting Group has made a guess of having 1 billion crypto users in the coming 10 years. The group also mentioned that the industry looks similar to the internet of the early 90s. 

Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.

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