In a document dated July 27, Thai cryptocurrency exchange Zipmex said its lawyers in Singapore, Morgan Lewis Stamford LLC, filed five applications under Section 64 of the Singapore Insolvency, Restructuring and Dissolution Act 2018 on behalf of the company. The announcement came just a week after CEO and co-founder Marcus Lim publicly denied the firm was in financial trouble. Rumors have circulated in the past month that the cryptocurrency exchange was insolvent after a takeover proposal by Coinbase fell through.
Also, Zipmex already filed for bankruptcy last Friday, but did not disclose the act until Wednesday. All of its subsidiary entities, consisting of Zipmex Asia Pte Lt, Zipmex Pte Ltd, Zipmex Company Limited, PT Zipmex Exchange Indonesia and Zipmex Australia Pty Ltd, were included in the filing. Also, Zipmex says a conference on the case regarding the bankruptcy filing has been scheduled for tomorrow at 16:00 GMT and that creditors had just until the 10:00 am deadline today to inform lawyers. who wanted to attend.
It appears that Zipmex’s fortunes took a turn for the worse following the collapse of Hong Kong-based crypto lender Babel Finance.. As Zipmex has said:
“The moratoriums would give Grupo Zipmex the breathing space and time it requires to explore options to resolve the liquidity situation (including to pursue recovery against Babel Finance), and to formulate a restructuring plan and secure additional investment to ensure Zipmex Group’s operations going forward”.
Zipmex states that it is in an advanced phase of obtaining new investments to alleviate its liquidity crisis. Currently, the Thai Securities and Exchange Commission is asking affected investors to register complaints against the company on its official site.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.