Crypto firm Eqonex, listed on the US Nasdaq stock exchange, will seek judicial management protection, citing a cash crunch.
The bankruptcy of the FTX exchange and the turbulent effects of the cryptocurrency market have put many corporate companies in trouble. Companies starting to experience liquidity and asset shortages are looking for ways to survive. Many corporate companies began preparations for bankruptcy, citing the FTX collapse. In addition, companies had to stop withdrawals or payment instrument services. In the crypto money market, which has been in a downward trend for months, negative news has started to come from Eqonex.
Eqonex Enters Court Process
Singapore-based crypto firm Eqonex became one of the first publicly traded crypto exchange operators. The company went through tough processes after going public. In particular, he gained attention by replacing CEO Richard Byworth last year. In addition, the company closed the crypto exchange and announced that it will provide asset management services.
Struggling with difficult processes, the company was also affected by the recent events. The company’s Hong Kong divisions, Diginex Ltd and Eqonex Capital Pte Ltd, went into voluntary liquidation.
In the statement released, the company stated that the court application was made under the provisions of bankruptcy, restructuring and liquidation. “Unfortunately, despite the best efforts of the group, the negotiations were not successful,” the company said.
According to the application, it was reported that Eqonex Group, which is on the Nasdaq list, could not close a short-term funding gap. Therefore, the company applied for judicial management to the Singapore high court.
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