Zipmex is seeking protection from potential claims or adverse actions for six months, citing “all efforts to focus on resolving the liquidity situation,” according to an announcement by the crypto exchange.
See related article: Zipmex targets raising US$50 mln to cover exposure to embattled crypto lenders
Fast facts
- On July 22, Morgan Lewis Stamford LLC, Zipmex’s solicitors in Singapore, filed applications under Section 64 of Singapore’s Insolvency, Restructuring, and Dissolution Act 2018 on behalf of five entities of the Zipmex Group, including branches in Thailand, Indonesia, and Australia, the statement said.
- Zipmex said potential solutions include pursuing recovery against Babel Finance, formulating a restructuring plan, and securing additional investment.
- Zipmex said it lent Babel Finance around US$50 million after the crypto financial services provider stopped withdrawals in June.
- Zipmex will hold a meeting of creditors on Friday afternoon local time, the announcement said.
- On July 24, Zipmex said it was in discussions with potential investors looking to acquire the company and that one of the stakeholders had offered to begin financial due diligence, which is usually the first step in an acquisition.
- On the evening of July 22 local time, Zipmex started to restore some withdrawals which had been suspended since July 20. However, users continue to be unable to trade, according to messages in its Telegram group.
See related article: Babel Finance says liquidity pressure eased with new debt agreements
