BTC Bear Market Forces Zipmex To File For Bankruptcy

The BTC Bear market forced Zipmex to also file for bankruptcy and it plans to buy itself time to resolve the liquidity issues so let’s read more today in our latest Bitcoin news.

Thailand-based exchange Zimpex is looking for bankruptcy protection against legal action from the creditors as per the update from the company. The company froze user withdrawals last week and submitted moratorium applications in Singapore for various entities. These are Zipmex Asia Pte LTD, Zipmex Company Limited, and Zipmex Australia Pty LD. Under the nation’s laws, the move will grant Zipmex protection from the continuation or commencement of proceedings by the claimants for 30 days or until the Singapore court makes the decision on the applications. The company explained:

“This helps protect Zipmex against third party actions, claims, and proceedings while it is active[…] without having to worry about defending potential claims or adverse actions while we are doing so.”

After pausing all trading and withdrawals on the exchange on July 20 and Zipmex has since resumed certain activity on the platform. The company noted yesterday that the trade wallet and NFT platform for example are fully operational and no further interruptions to the products are planned. The withdrawals from Z wallets which are the main wallets where customer funds are stored on Zipmex remain frozen.

The company’s troubles came as a result of the fallout from the crypto contagion after the collapse of the terra and crypto hedge fund Three Arrows Capital alogn with the depressed crypto prices amid the deepening bear market. A few crypto trading platforms for user withdraws like Voyager Digital, CoinFLEX, Babel Finance, and Celsius. Zipmex said when it paused the withdrawals that it had encountered financial issues with key business partners which the company revealed to be $48 million and $5 million exposure to Celsius and Babel Finance.

The company said that it plans to use the time allowed by the bankruptcy protection to resolve the liqudity issues and create a restructuring plan and secure new investments to support the operations going forward. The company claims that it already received formal, registered interest from the investors to shore up the finances as the BTC bear market forces companies to seek means of help.