Over the past few months, crypto firms in Singapore and globally have been filing for bankruptcy. The latest entity to file for bankruptcy in Singapore is cryptocurrency exchange Zipmex.
A Reuters report confirmed that Singaporean based Zimpex has become the latest victim of the global bearish crypto market.
Singapore-based Zipmex resumed withdrawals last week, a day after suspending them on July 20. Zipmex said it was working to address its exposure of $53 million to crypto lenders Babel Finance and Celsius.
Zipmex’s solicitors submitted five applications on July 22 seeking moratoriums to prohibit legal proceedings against Zipmex for up to six months.
Under Singapore law, such a filing grants companies an automatic moratorium for 30 days, or until a Singapore Court makes a decision on the application, whichever is earlier.
Zipmex, which operates in Singapore, Thailand, Indonesia and Australia according to its website, is the latest in a string of crypto players globally to run into difficulties.
Prior to Zipmex bankruptcy notice was the bankruptcy of Singaporean crypto Fund, Three Arrows Capital. Three Arrows Capital began liquidation proceedings in the British Virgin Islands on June 27,2022 after it became unable to meet hundreds of millions of dollars in obligations.
In 2021, investment in Singapore’s crypto and blockchain companies surged to $1.48 billion in 2021, according to KPMG.
