Bitcoin exchange A day after suspending withdrawals, Zipmex started them up again last week.
Following a steep fall in the value of cryptocurrencies, the most recent victim of the cryptocurrency industry, Zipmex, seeks bankruptcy protection in Singapore.
The newest casualty of the global decline in cryptocurrency markets is the Southeast Asian cryptocurrency exchange Zipmex, which operates in countries like Singapore, Thailand, Indonesia, and Australia. Zipmex announced that it had filed for bankruptcy protection in Singapore.
After banning withdrawals on July 20 for one day, Zipmex announced last week that it was attempting to manage its $53 million exposure to cryptocurrency lenders Babel Finance and Celsius.
According to a statement made by the cryptocurrency exchange on Wednesday, the Zipmex Group’s solicitors in Singapore, Morgan Lewis Stamford LLC, filed five applications on behalf of various Zipmex Group entities on July 22, 2022, under Section 64 of Singapore’s Insolvency, Restructuring and Dissolution Act 2018.
According to Singaporean law, such a filing gives companies a 30-day automatic moratorium, or until a Singapore Court rules on the case, whichever comes first.
According to its website, Zipmex operates in Singapore, Thailand, Indonesia, and Australia.
Zipmex is the most recent in a growing list of cryptocurrency players to experience problems as a result of a strong market sell-off that began in May with the collapse of two linked currencies, Luna and TerraUSD.
Following a strong sell-off in cryptocurrency markets that began in May with the collapse of two paired tokens, Luna and TerraUSD, Zipmex is the most recent in a line of crypto players to experience troubles on a worldwide scale.
Along with other cryptocurrency companies including Celsius Network Ltd. and Vauld, Zipmex has suspended withdrawals, leaving depositors stranded and highlighting the dangers of leveraged bets that are pervasive in the market.
According to its website, the cryptocurrency exchange was established in September 2019 and has offices in Singapore and Thailand. According to CoinGecko data, the company’s native ZMT coin has lost more than 93% of its value since reaching an all-time high in April of last year.
A number of crypto firms have declared bankruptcy or had to hunt for emergency capital inflows. Insolvency risks loomed big over significant crypto lending companies, sowing fear among market participants that the cryptocurrency economy was unable to recover from Terra’s collapse in May.
Bitcoin and other cryptocurrencies had price increases in 2020 and 2021, but this year they have dropped significantly.
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