April 14, 2024

Singapore Court Grants 3-Month Creditor Protection to Zipmex

The court of Singapore has just done a huge favor for Zipmex by granting it creditor protection.

Zipmex Gets Creditor Protection

Zipmex, a major cryptocurrency exchange operating in Singapore had found itself facing a huge liquidity crisis.

However, the court of Singapore has recognized the worry of the cryptocurrency exchange and has helped it sort out its problems.

The exchange is reportedly facing liquidity issues and the Singapore court has granted it creditor protection. According to information, the Singapore court has granted the exchange with three-year creditor protection.

With three months on the clock, Zipmex now has the opportunity of sorting out the issues it is facing with liquidity. During this time period, none of the creditors will be able to approach Zipmex demanding their investments or funds.

The moratorium for Zipmex Entities

According to the High Court of Singapore, Zipmex and all of its five entities operating in the country have until the 2nd of December 2022 to deal with its liquidity issues.

The High Court has reportedly given it a moratorium during which the exchange will have the opportunity of coming up with a restructuring plan. This information has been made public on Monday.

Zipmex Halted its Withdrawals Mid-July

It was mid of July when Zipmex ended up halting its withdrawal services. As the withdrawal was so abrupt, it ended up raising huge concerns and angering the entire investment community interacting with the exchange.

Since the complete halt, Zipmex has announced the resumption of the withdrawal service but not in full force. Zipmex has permitted partial withdrawal access to the users and is yet to announce full withdrawal capability for the users.

The users can carry out the withdrawal through the wallet provided by Zipmex to the users benefiting from its services.

Zipmex Wanted Six Months

The sources have confirmed that at the Singapore High Court, Zipmex had requested a six-month creditor protection period.

The exchange sought protection right after it halted the withdrawals for the investors. For this purpose, Zipmex had filed multiple moratorium applications, which if counted were five in number.

These applications were submitted by the legal teams at the exchange on July 27.

In the application, the exchange revealed that it was facing severe liquidity issues and they were mainly due to Babel Finance, a major cryptocurrency lender. Babel Finance had also halted its withdrawal services back in the month of June.

Zipmex is not the Only Exchange under Creditor Protection

It is to be noted that Zipmex is not the only cryptocurrency exchange that has faced liquidity issues. Several other cryptocurrency firms operating in Singapore have faced the same problem.

Back in July, three-month creditor protection was provided to Vauld, which halted withdrawals in the month of July.

Leave a Reply

Your email address will not be published. Required fields are marked *