Crypto platform Zipmex Files for Up to Six Months Bankruptcy Protection in Singapore

The Southeast Asia-focused cryptocurrency exchange Zipmex has filed for bankruptcy protection in Singapore, becoming the latest victim of the global downturn in digital currencies.

After suspending withdrawals on July 20, Singapore-based Zipmex resumed the services last week and said it was working to resolve its exposure of $53 million to crypto lenders Babel Finance and Celsius.

The cryptocurrency exchange said on Wednesday, Zipmex’s legal team has submitted five applications on July 22 seeking moratoriums to prohibit legal proceedings against Zipmex for up to six months. 

Such filing in SIngapore grants companies an automatic moratorium for 30 days, or until a Singapore Court makes a decision on the application, whichever is earlier.

According to its website, Zipmex which operates in Singapore, Thailand, Indonesia and Australia is the latest in a string of crypto players worldwide who have been affected by the market volatility which started in May with the collapse of two paired tokens, Luna and TerraUSD.

On Monday, Thailand’s Securities and Exchange Commission said that it was working with law enforcement to look into potential losses among the public after Zipmex temporarily suspended withdrawals.