The Singapore High Court has granted Zipmex crypto exchange some protection from creditors until 2nd December 2022. Zipmex had asked the Singaporean court for bankruptcy protection on 22 July 22 and some more time for the restructuring of their debt on 4th August 2022.

Zipmex operates in Singapore, Australia, Thailand and Indonesia. The crypto exchange’s exposure to Babel Finance and Celsius Network left the platform with serious liquidity issues which forced it to halt all withdrawals last month. After it halted the withdrawals, Thai regulators promptly asked for clarification on the situation.

Multiple media reports claim that nearly 20,000 customers have deposited their funds with the Zipmex platform through the ZipUp+ service. This approval of the bankruptcy protection by the Singapore court will protect Zipmex from lawsuits by customers who are asking for their funds to be unlocked.

Zipmex’s problem first came to light when it halted withdrawals amid extreme marker conditions on 20th July 2022. Zipmex then reported to Thai regulators in the following weeks that it had exposure to Babel Finance to the tune of $48 Million and Celsius Network to the tune of $5 Million respectively.

Both Babel Finance and Celsius Network faced an extreme liquidity crisis that was spurred on by the market crash accelerated by the fall of Terra’s Luna and stablecoin UST. While Zipmex was looking for fresh deals to inject liquidity into the company and save it from the looming insolvency, customers reported losses because the firm paused all the withdrawals on its platform.

Zipmex however partly resumed withdrawals earlier this month, specifically ETH and BTC withdrawals from 11th August and 16th August respectively specifically for it’s Z wallet customers. The platform had allowed the withdrawals of some altcoins including XRP, ADA and SOL before then.

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