Southeast Asian cryptocurrency exchange, Zipmex, has submitted several applications for a moratorium to a Singaporean court under section 64 of Singapore’s Insolvency, Restructuring and Dissolution Act 2018 to a Singaporean court. The Singaporean crypto firm announced that they filed the applications on behalf of five of their entities.
A moratorium protects debtors from any legal redress by its creditors for a certain period of time. This period buys the debtor some time to think about other options like filing for bankruptcy, a debt arrangement scheme or a trust deed.
Zipmex announced that they were seeking some protection from their creditors for at least six months. The company informed the public that they plan to use the time to focus on resolving their liquidity problems while still serving their customers.
However, Thailand’s financial regulators, Thailand Security and Exchange Commission (SEC), reportedly sent a letter to Zipmex asking them to clarify their reasons for seeking a moratorium in a Singaporean court. Thailand’s SEC also wants Zipmex’s creditors to exercise their right to attend the case hearing slated for 29th July 2022.
Zipmex came under the radar of Thailand’s SEC on 20th July 2022 when the exchange abruptly halted withdrawals due to market volatility and some unclarified financial problems with some of their partners. The firm however resumed withdrawals on their platform that same day.
Thailand’s financial regulator had demanded to know why Zipmex had paused withdrawals that day and if Zipmex had any level of exposure to Babel Finance and Celsius. Zipmex responded that they had $48 million exposure to Babel Finance and $5 million exposure to Celsius although they confirmed that they intended to write of Celsius’ debt while pursuing credit recovery from Babel.
Zipmex also announce recently that they are in talks with several interested parties to achieve a solution to their liquidity problems. This has however not stopped Thailand’s Securities and Exchange Commission from gathering information from customers who have recorded losses due to Zipmex’s actions.
Featured Image Source: www.digitallycool.com
