Cryptocurrency exchange Zipmex has given 3 months to make a financing plan with the decision of the City Court.
Cryptocurrency exchange Zipmex filed for bankruptcy last July. Singapore’s Supreme Court has granted the cryptocurrency exchange more than three months of creditor protection so the company can devise a financing plan, Bloomberg News reported on Monday.
Zipmex Wants to Reverse the Situation
Zipmex, which has filed for bankruptcy and suspended withdrawals, will be protected from potential creditor lawsuits until December 2. In response, the company’s attorney, Morgan Lewis Stamford, applied for six-month protection for the exchange’s five entities, which include Singapore, Thailand, Indonesia and Australia.
Cryptocurrency exchange Zipmex, which has filed for bankruptcy, said in a statement on August 2 that it is exploring multiple ways to secure financing. He added that due diligence was accelerated after signing a memorandum of understanding with the two investors.
Zipmex is one of the few crypto companies to succumb to market pressures in the past two months, with the likes of Celsius Network and Voyager Digital filing for bankruptcy, while Singapore-based hedge fund Three Arrows Capital collapsed. Zipmex loaned Babel Finance $48 million and Celsius $5 million, but the company was in trouble when both failed to repay their loans.
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