Zipmex seeks protection against creditors

Troubled South Asian crypto exchange Zipmex has filed for protection against creditors in Singapore.

Zipmex’s solicitors Morgan Lewis Stamford LLC filed five moratorium applications under Section 64 of Singapore’s Insolvency, Restructuring and Dissolution Act 2018 on behalf of several of its entities on July 22.

Under Singapore law, an automatic moratorium for 30 days arises upon filing the application.

Zipmex is now seeking a moratorium extension of up to six months to prohibit and restrain the commencement or continuation of legal proceedings against it.

Zipmex halted and resumed certain withdrawals earlier this month but is currently working towards resolving its liquidity situation and re-enabling the Z Wallet for all users.

The Z Wallet is the main wallet used for storing cryptocurrencies on the platform and it’s separate from the Trade Wallet, which is used for trading.

Zipmex recently disclosed that it had a $48 million exposure to bankrupt crypto firms Babel Finance and Celsius.

Zipmex has signed a second memorandum of understanding (MOU) after signing the first MOU on July 24 with a potential investor.