Thailand-Based Crypto Exchange Zipmex Files for Bankruptcy Amid Bear Market

Thailand-Based Crypto Exchange Zipmex Files for Bankruptcy Amid Bear Market

It seems as though the company is clutching at straws as hard as it can.

Zipmex, a troubled Thailand-based cryptocurrency exchange, has recently filed for bankruptcy protection against legal action from creditors.

According to the official announcement issued on July 27th, Morgan Lewis Stamford, Zipmex’s current lawyers, submitted five moratorium applications on July 22nd for its subsidiary entities, including Zipmex Asia Pte Ltd, Zipmex Company Limited, Zipmex Pte Ltd, PT Zipmex Exchange Indonesia, and Zipmex Australia Pty Ltd.

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The official report also read that the filling will provide Zipmex protection for 30 days or until a Singapore court makes a decision. The exchange noted:

"This helps protect Zipmex against third party actions, claims, and proceedings while it is active, and enables the team to focus all our efforts on resolving the liquidity situation, without having to worry about defending potential claims or adverse actions while we are doing so."

Interestingly enough, earlier in July, Marcus Lim, CEO and co-founder of Zipmex, reassured the public that the company is going to continue operating as it hasn’t faced any financial trouble over the past month.

Nonetheless, the recent fall of crypto lender Babel Finance has added some pressure for Zipmex, as it is now seeking to recover from it by "formulating a restructuring plan and securing additional investment."

Last week, Zipmex temporarily paused customer withdrawals due to the harsh crypto market conditions. Likewise, a few days after, Thailand’s Securities and Exchange Commission (SEC) initiated an investigation into the aftermath that Zipmex’s decision had on investors.

In fact, Zipmex isn't the only crypto exchange to take such a drastic measure, as earlier this year, Celsius, one of the largest players in the nascent crypto lending space, filed for bankruptcy protection to stabilize its business and work out restructuring for all stakeholders.

Gyth L. - Crypto Analyst

by Gyth L. - Crypto Analyst, BitDegree


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